14 DAY TRIAL // Google is ditching one of its few forays in the non-web world by selling its radio advertising business, Google Radio, to online advertising and software company WideOrbit. As part of the deal, all the components of Google's radio automation business, including Google Radio Automation, Maestro and SS32, have been bought by the San Francisco-based company.
“The acquisition of Google Radio Automation is key to WideOrbit’s strategy to expand our product offering and deliver the most advanced and comprehensive solution to radio broadcasters,” Eric Mathewson, founder and CEO of WideOrbit, said. “This acquisition greatly benefits WideOrbit radio customers and Google’s radio automation customers alike. We welcome the Google Radio Automation employees, customers and partners to the WideOrbit family.”
Google Radio was part of a, mostly failed, push to move out of Internet advertising into TV, radio and newspaper. The efforts trace back to when Tim Armstrong, now AOL's CEO, was leading Google's US operations, but their results have been far from satisfactory. Google Radio was actually closed earlier in the year, but the service still boasts some 3,600 customers around the world, which will now be acquired by WideOrbit.
“We are pleased that WideOrbit will be able to take advantage of Google's radio automation technology as they continue to develop their business,” Jim Woods, director of Product Management at Google, added. “We are confident that WideOrbit will make every effort to improve the technology and serve existing customers at the highest possible level.”
The San Fracisco-based WideOrbit is a venture capital-backed company, which has raised at least $34.5 million in funding from investors such as Mayfield, Khosla Ventures, Greycroft partners and Hearst Ventures. The company claims more than 1,300 clients including TV and cable networks, radio stations, as well as other interests in other areas, like mobile advertising. WideOrbit manages around $12 billion in advertising revenue for companies like NBC, Telemundo, Hearst Television, Gannett and others.