The mobile industry is clearly salivating at the prospect of deep-pocket players, like Apple (NSDQ: AAPL), buying startups, especially after Google dropped $750 million for AdMob.
After early morning rumors, Apple is now expected to announce that it has acquired Quattro Wireless, a mobile ad network that also has a heavy concentration in publishing mobile web sites for existing web properties. After the report, one source reached out to us to say that they heard Apple was paying $270 million for the company. Another source, who also had heard the deal closed, said they hoped that was the correct number. But Kara Swisher’s AllThingsD isn’t hesitating in reporting the acquisition as fact, and wrote in a late post today that “several sources” had confirmed that Apple was set to acquire Quattro for $275 million. The announcement was coming as soon as tomorrow, she added.
Quattro has raised $28 million from two main venture investors–Highland Capital Partners and Globespan Capital Partners. Quattro has secured a number of high-profile partnerships, including ones with Blackberry’s Research In Motion and T-Mobile USA. Quattro’s emphasis has been on working with publishers to bring their online content to mobile, thereby driving the mobile advertising industry by creating more inventory. Based on numbers released last year, Quattro ranked as the 8th largest U.S. mobile ad network with about 23 million unique visitors.
Quattro last raised money in March when it was expanding internationally, including to Western Europe, Australia, South Africa, Asia and India. Although Quattro’s international network had only been live for a few weeks at that time, it was already accounting for 10 percent of the company’s business. Clients included Goal.com, hi5 and MySpace.
An international presence will be important to Apple since it sells the iPhone in many countries around the globe. Apple was previously rumored to be interested in buying AdMob, and likely doesn’t want to be viewed as falling behind in the growing market, especially in light of Google’s big-ticket purchase. Right now, Apple makes 30 percent off the sale of all mobile applications distributed on the iPhone and iPod Touch. But with free, ad-supported applications, Apple does not make anything. It may be looking to change that paradigm, especially as it launches new devices, like the well-rumored tablet.