Katie MarsalAndy Miller, former CEO of Quattro Wireless, has been named the vice president of Mobile Advertising at Apple. Miller confirmed the purchase and his new role with the Cupertino, Calif., company in a note on the Quattro Web site.
Monday evening, Apple's purchase of Quattro was first revealed, though unconfirmed. The company's advertising network includes iPhone, Android and other smartphone apps, as well as thousands of mobile Web sites. The Waltham, Mass., company has a client list that includes companies such as Disney, Visa and Ford. It is said that Apple agreed to a $275 million price tag.
Quattro is also a direct competitor to AdMob, the mobile advertising agency that Apple allegedly had discussions with before it was acquired by Google for $750 million. But Google's AdMob deal has come under scrutiny from the Federal Trade Commission, due to concerns that the deal could allow Google to monopolize the mobile ad market.
Miller's letter follows in its entirety:
Happy New Year from Quattro Wireless!
We are thrilled to let you know that Apple has acquired Quattro. We want to share with you our excitement about this news and what it means for our customers.
We have built our business by enabling advertisers to reach the right consumers across the mobile web and in applications. We remain focused on delivering more engaging, relevant and useful ads to mobile devices, and improving the measurement and execution of digital campaigns. Together with Apple, we look forward to developing exciting new opportunities in the future that will benefit our customers.
For now, the offerings and services you receive from Quattro Wireless will not change. We will continue to operate the Quattro Wireless network across all devices and platforms. Your client and support teams will remain the same, and you can continue to expect the world-class service we are proud to deliver to our customers.
We look forward to working with you during this exciting time.
Andy Miller
Vice President, Mobile Advertising
Apple
Apple's purchase of Quattro follows the acquisition of online music streaming service Lala in December. That deal, said to be valued at $85 million, is believed to pave the way for a cloud-based iTunes service.
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42 Comments
Apple is showing the willingness to use it's strong cash position to make strategic moves. I expect more acquisitions over the next couple of years.
Good for Apple. Next they likely will buy a smaller, innovative search engine company... Many are likely for sale, and then combine the search revenue and make that engine your default search in all the Safari versions (iPhone mobile Safari, Mac and PC desktop Safari, Tablet Safari, etc.).
Are strategic social networking sites acquisitions far behind?
Music (iTunes and LaLa), a mobile ad company (Quattro Wireless), a neat search engine, combined with a few social networking acquisitions... Recipe for revenue!
Next purchase: a mobile phone company!
Done with all the bickering with AT&T, Verizon and what have you!
This move scares me.
Apple's business is creating terrific customer experiences with consumer electronics and computers. Why are they buying an advertising business?
The reason Google will fail at competing with the iPhone is that they are an advertising business. They cannot compete with Apple's mission of creating great experiences. If Apple begins to become an advertising business, it may the first true danger to Apple's emerging dominance in the computer/cell phone business.
If you think that's preposterous ask yourself this, why are we not all using Sony MP3Mans to listen to our music? The answer is that Sony bought Universal Pictures and went from a company that made great consumer electronics to a "content provider". They ruined their MP3 players with DRM designed not to help consumers but to protect Sony.
Beware, Apple. Don't lose sight of your mission. Don't lose your focus.
Good for Apple. Next they likely will buy a smaller, innovative search engine company... Many are likely for sale, and then combine the search revenue and make that engine your default search in all the Safari versions (iPhone mobile Safari, Mac and PC desktop Safari, Tablet Safari, etc.).
Are strategic social networking sites acquisitions far behind?
Music (iTunes and LaLa), a mobile ad company (Quattro Wireless), a neat search engine, combined with a few social networking acquisitions... Recipe for revenue!
I'm not so sure that taking on Google in search is any smarter than taking on Apple in MP3 players. Knowing Apple, I'd bet there is something much deeper and long term in mind then you might think.
One thing is clear - Apple has taken a page from Google. Likewise, Google has taken some pages from Apple. Gee Wally, you'd think they spent time on each other's board of directors.