Google on Monday agreed to acquire AdMob, a three-year-old mobile advertising startup, for $750 million in stock.

 

San Mateo, California, AdMob was founded in 2006 by Omar Hamoui while attending business school. The startup claims its advertising network reaches 52 percent of mobile Internet users in the United States. Among other areas, the company's ads often appear on top of mobile applications such as those inside Apple's  iPhone.

The deal gives the search king a better position in the fast-moving mobile advertising segment, providing delivery of mobile display ads and those inside applications. Google also operates Double Click Mobile for the delivery of display ads to mobile, acquired along with its $3.2 billion purchase of DoubleClick in 2008.

"This acquisition will enhance Google's existing expertise and technology in mobile advertising, while also giving advertisers and publishers more choice in this growing new area," Google said in a statement.

AdMob backers include Accel Partners, Sequoia Capital, Draper Fisher Jurvetson, and Northgate Capital Group.