San Francisco – Google has agreed to acquire Adscape Media, a provider of in-game advertising, for $23 million, RedHerring.com reported, citing sources familiar with the matter. Founded in 2002, San Francisco-based Adscape has developed technology that allows marketers to place dynamic ads inside of video games.

The company raised $3.2 million from HIG Ventures in February 2006, and launched its service last year, but to date has not announced any game publisher partners.

The sources told RedHerring.com the acquisition gives Google "little beyond a few potentially interesting patents," and cautioned that deals with big-name publishers are not likely "anytime soon."

Rival Microsoft acquired in-game ads firm Massive Inc. in April 2006 in a deal valued at between $200 million and $400 million; other players in the market include San Francisco-based Double Fusion.

Related Links:
http://www.redherring.com/Article.aspx?a=21323
http://www.adscapemedia.com