Quattro Wireless confirms acquisition, CEO named Apple VP

Posted:
in General Discussion edited January 2014
Apple has officially entered into the advertising business with the purchase of Quattro Wireless, the mobile ad company confirmed via its Web site Tuesday.

Andy 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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Comments

  • Reply 1 of 42
    amac4meamac4me Posts: 282member
    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.
  • Reply 2 of 42
    adamwadamw Posts: 114guest
    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!
  • Reply 3 of 42
    roos24roos24 Posts: 170member
    Next purchase: a mobile phone company!



    Done with all the bickering with AT&T, Verizon and what have you!



  • Reply 4 of 42
    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.
  • Reply 5 of 42
    Quote:
    Originally Posted by adamw View Post


    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.
  • Reply 6 of 42
    I'm still trying to figure out what Apple wants this company for. Looking at their website, it doesn't appear to have any incredible or especially unique qualities. While I checked out Lala after Apple bought them, and found them to be a really spectacular addition, I can't see the purpose of this acquisition other than maybe a defensive purchase, which while it might keep others from getting a chokehold, doesn't really seem like an Apple purchase. Apple usually seems to buy companies that have a particular skill or unique ability that can somehow enhance Apple's current of near-future assets. The maps company=future iMap. Lala=future online iTunes (maybe integrated with MobileMe?) and usage statistics. This deal=???
  • Reply 7 of 42
    Quote:
    Originally Posted by adamw View Post


    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.).



    If I were to guess on a search engine purchase (not that I think they will buy one) would be Wolfram|Alpha. It needs a lot of work right now, but I think they could become the future of search. This could also translate into context-sensitive help menus in Mac OS X that can tell you how to do about anything. Talk about a rejuvenated Spotlight! Time Machine searches, etc. would be terrifically enhanced.

    Oh, the possibilities.
  • Reply 8 of 42
    ltmpltmp Posts: 204member
    Quote:
    Originally Posted by Smiles77 View Post


    I'm still trying to figure out what Apple wants this company for. Looking at their website, it doesn't appear to have any incredible or especially unique qualities. While I checked out Lala after Apple bought them, and found them to be a really spectacular addition, I can't see the purpose of this acquisition other than maybe a defensive purchase, which while it might keep others from getting a chokehold, doesn't really seem like an Apple purchase. Apple usually seems to buy companies that have a particular skill or unique ability that can somehow enhance Apple's current of near-future assets. The maps company=future iMap. Lala=future online iTunes (maybe integrated with MobileMe?) and usage statistics. This deal=???



    I believe that they want to add ads to the sdk. If developers have a really easy way to incorporate their ads, Apple will get a big chunk of the iPhone ad revenue while keeping the existing revenue from other mobile platforms.
  • Reply 9 of 42
    ivladivlad Posts: 735member
    This is good move. Apple doesn't want Google to have a monopoly.
  • Reply 10 of 42
    Quote:
    Originally Posted by LTMP View Post


    I believe that they want to add ads to the sdk. If developers have a really easy way to incorporate their ads, Apple will get a big chunk of the iPhone ad revenue while keeping the existing revenue from other mobile platforms.



    Sounds reasonable. I just hope that Apple shakes out a little magic to make ads both good for developers, yet do no harm to the user experience. I think we need a new variety of ads as opposed to boring, intrusive banner ads.
  • Reply 11 of 42
    adamwadamw Posts: 114guest
    Quote:
    Originally Posted by FormerARSgm View Post


    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.



    I don't believe Apple would be taking on Google head to head in search per se, but rather offering advertisers and users a way to use an Apple owned search engine to keep ad revenues (and control over search results) with Apple. Right now Apple is giving Google free traffic and search-based revenue each time an Apple user/customer uses their Google search box in a Safari browser.
  • Reply 12 of 42
    Quote:
    Originally Posted by adamw View Post


    Right now Apple is giving Google free traffic and search-based revenue each time an Apple user/customer uses their Google search box in a Safari browser.



    How do you know Google isn't paying Apple to be their dedicated search engine for Safari (Mac and iPhone?)



    I would guess the only reason there is a link in the weather app to that crappy Yahoo Weather site is because they are paying for it.
  • Reply 13 of 42
    paxmanpaxman Posts: 4,546member
    Quote:
    Originally Posted by Smiles77 View Post


    I'm still trying to figure out what Apple wants this company for. Looking at their website, it doesn't appear to have any incredible or especially unique qualities. While I checked out Lala after Apple bought them, and found them to be a really spectacular addition, I can't see the purpose of this acquisition other than maybe a defensive purchase, which while it might keep others from getting a chokehold, doesn't really seem like an Apple purchase. Apple usually seems to buy companies that have a particular skill or unique ability that can somehow enhance Apple's current of near-future assets. The maps company=future iMap. Lala=future online iTunes (maybe integrated with MobileMe?) and usage statistics. This deal=???



    This article may shed some light on the thinking behind the acquisition. Just speculation of course... http://www.macworld.com/article/1454...1/quattro.html
  • Reply 14 of 42
    aaarrrggghaaarrrgggh Posts: 1,557member
    Quote:
    Originally Posted by Smiles77 View Post


    I'm still trying to figure out what Apple wants this company for. Looking at their website, it doesn't appear to have any incredible or especially unique qualities.



    My first guess was that they will build advertising widgets into the SDK to provide a revenue source for free apps. They can monetize many of the things that Google is doing well right now.



    ...It also helps take the heat off of Google for advertising monopoly, but I doubt there is any kind of collusion going on. Simply synergy and mutualism.
  • Reply 15 of 42
    gazoobeegazoobee Posts: 3,754member
    Quote:
    Originally Posted by adamw View Post


    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!



    This all sounds totally evil to me.



    Don't you think a company might have higher motives than simply generating revenue? Don't you have any moral compass at all?



    If Apple just wanted to make money there are thousands of other ways to go about it and hundreds of opportunities they already passed by in favour of adhering more closely to their stated goals. Why do you immediately assume that it's all about the revenue and that this is Apple's main focus?



    If more companies were like Apple, and actually focussed on their customers, what the customers wanted, and making the best product they could make at the fairest prices they can, the world would be a lot better off.



    PS - Please remove the religious advertisement from your sig. it's really bad etiquette.
  • Reply 16 of 42
    adamwadamw Posts: 114guest
    I was simply giving possible scenarios, based on Apple's announcement today of this acquisition of Quattro Wireless.



    I would like Apple to stay focused on computers and software, but realize that in this real world, where Google and Microsoft are trying to dominate, that Apple needs to at very least be somewhat defensive in their acquisitions, products, and services.
  • Reply 17 of 42
    irelandireland Posts: 17,128member
    Quote:
    Originally Posted by Roos24 View Post


    Next purchase: a mobile phone company!



    Done with all the bickering with AT&T, Verizon and what have you!







    Apple are a mobile phone company. The last thing they want to do is purchase any carrier, as it's a nightmare business. Not to mention Apple operates in most countries on many different carriers, they won't buy one just because it's America.
  • Reply 18 of 42
    irelandireland Posts: 17,128member
    Quote:
    Originally Posted by adamw View Post


    I was simply giving possible scenarios, based on Apple's announcement today of this acquisition of Quattro Wireless.



    I would like Apple to stay focused on computers and software...



    "Download iTunes 10" for example is Apple focusing on software. They just don't want to have to get into a shouting match to get noticed.
  • Reply 19 of 42
    irelandireland Posts: 17,128member
    Quote:
    Originally Posted by amac4me View Post


    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.



    I'm selling a bucket of steam for $863M if they are interested.
  • Reply 20 of 42
    quadra 610quadra 610 Posts: 6,736member
    Quote:
    Originally Posted by adamw View Post




    I would like Apple to stay focused on computers and software.



    They are:



    Macs = computer

    iPod = computer

    iPhone = computer

    Tablet = computer

    And they all run software.



    In 2010 we need to redefine the word "computer", or at least apply it to a broader range of devices.
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