Google CEO Eric Schmidt
Federal regulators have extended the review, with Google and AdMob's permission

Google's acquisition of AdMob for $750M USD was announced in November 2009 and promised to give Google's Android phone a powerful monetization tool by bringing dedicated mobile advertising.  The move in part was seen as a catalyst in convincing rival Apple to scoop up rival mobile ad firm Quattro Wireless, a $275M USD deal announced in January.

The Federal Trade Commission has been investigating Google's purchase and is trying to decide whether to let it go through.  It has made several requests for information.

Now it has announced a two week extension to its review process, which was supposed to expire Monday.  The extension was approved by Google and AdMob, and is actually good news for Google.

The feds will use the extra time to look at the effects of Apple's rival acquisition and its upcoming iAds.  This is good news for Google as it means that the AdMob deal is less likely to look to give the company an overly dominant position and thus is more likely to go through.

One factor that is complicating the investigation is Apple's unwillingness to provide federal investigators with information on its iAd plans.  Apple is notorious for being secretive and despite recent breaches, it tends to try to not share info on upcoming products with anyone -- even the government.

Analysts are divided on whether the deal should go through.  Some say that blocking the deal would be an example of overregulation and would damage the competitiveness of Google's Android handset.  Others are critical of the government's quick approvals of past Google acquisitions, like the 2007 DoubleClick purchase.  Martin Sorrell, chief executive of WPP, one of the world’s largest advertising groups suggests that the review "should be rigorous".

The final decision could come as soon as Friday.

"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation

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