Red Herring confirms that the deal is happening (for $23 million). Sub-$20 to $30 million (with a few exceptions) is Google’s acquisition “sweet spot.” Once a valuation exceeds that amount Google is less inclined to acquire. Google buys companies for their engineers/talent and their technology. Here it’s clearly the technology and related capabilities.
In 2006, Microsoft bought Massive, which also provides in-game ad insertion.
Google, AdScape, Video Game Advetising Company, Deal