Was Quattro a bargain? Was AdMob a rip-off?

Apple’s announcement of $60 million booked revenues for iAd, of which 60% is meant for developers implies $24 million operating profit for the second half of 2010.  Assuming this rate doubles $100 million for 2011, it becomes clear that the acquisition of Quattro for $250 million is reasonable (2.5x gross earnings) and that the AdMob price of $750 million seems expensive.

Now Google may have justification for the $750 million along the lines of income from non-Apple platforms, but the CPMs for Admob are a fraction (perhaps 10%) of what iAd is able to obtain.  Therefore, it’s a pretty fair conclusion that Google did not get a bargain.