The Wall Street Journal reported today that Google is in talks to acquire San Francisco-based Adscape Media, an in-game advertising firm. A deal could be reached as early as next week, according to the report. Google has been in discussions for months with game publishers regarding the delivery of ads into Internet-enabled video games. The acquisition would enable Google to offer another advertising channel to ad clients, such as virtual billboards in racing games. No details of terms are known at this time.

Last year, Microsoft acquired Massive, another provider of in-game ads, for close to $200 million. According to the report, Massive had been approached by Google, as well, prior to its sale to Microsoft.

As is customary, a Google spokesman declined to comment on any talks with Adscape. Adscape Chairman Bernard Stolar was quoted as stating that he "has spoken to every major player" about a possible acquisition of Adscape, but there currently is no such deal.

An intangible and valuable asset of Adscape is the relationships its Chairman holds with leading publishers of games. The story also alludes that this deal could be a prelude to a Google-Sony-Playstation alliance against Microsoft and its Xbox 360 platform.

Websites of Leading Providers of In-Game Ads:
http://www.adscapemedia.com
http://www.doublefusion.com
http://www.greystripe.com
http://www.igaworldwide.com
http://www.massiveincorporated.com

Related Links:
Google's Next Ad Frontier May Be Inside Videogames (WSJ)
In-Game Advertising Network Double Fusion Raises $26 Million
Take-Two Signs In-Game Ad Deal with Double Fusion
MEET: In-Game Advertising Market Is About To Explode
Electronic Arts Signs In-Game Ad Deals With Massive, IGA Worldwide
Intel Capital Adds to $17 Million First Round for In-Game Ads Firm IGA
Report: PC In-Game Ad Revenue to Top $400 Million in 2009