Google’s acquisition of AdMob will not close right away because the FTC has issued what is called a “second request,” which means that the regulatory body believes it is necessary to have more information to review the $750 million deal.
In a blog post, Google (NSDQ: GOOG) wrote: “As we said when we announced the deal, we don’t see any regulatory issues with this deal, because the rapidly growing mobile advertising space is highly competitive with more than a dozen mobile ad networks…That said, we know that closer scrutiny has been one consequence of Google’s success.”
In an informational brochure on the FTC website, it says that if either the FTC or the DOJ determines that further inquiry is necessary, it can request additional documents under the the Clayton Act. In this scenario, it said it typically extends the waiting period for 30 days after all parties have complied with the information request. Depending on how long Google takes to provide the appropriate documentation to the FTC, we are assuming the deal won’t close until around February now. “While this means we won’t be closing right away, we’re confident that the FTC will conclude that the rapidly growing mobile advertising space will remain highly competitive after this deal closes. And we’ll be working closely and cooperatively with them as they continue their review,” Google wrote.
Initially, when the deal was first announced on Nov. 7, Google said its “hopeful that it will be wrapped up in the next several months.”