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Google looks to buy in-game ad firm

Google is looking to buy in-game advertising firm Adscape Media and a deal could be reached as early as next week, the Wall Street Journal reports.

This follows Microsoft's purchase of in-game ad company Massive Inc for almost $200 million, and signifies the latest chapter in the battle between the two internet giants.

The San Francisco-based Adscape was founded by Nortel engineer Dan Willis in 2002 and has two ex-Sega executives on board.

Google is likely to use its own contextual ad system in the game ad market and will probably focus on online casual gaming, because other firms have already inked deals with major game publishers.

The move follows Google's advertising tie-up with newspapers in the US, which appears to be proving extremely successful.

Meanwhile, the Financial Times reports that Google and Microsoft are to spend no less than $1 billion between them on new data centres as the internet because ever more popular.

Google will lay out $600 million on a new server farm in North Carolina, while Microsoft will build a $550 facility in San Antonio, Texas.

Search Marketing news posted on 22 January 2007

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