Google acquires Newport ad firm

Search engine giant announces deal to purchase dMarc Broadcasting for $102 million cash.Under a merger deal announced Tuesday, Newport Beach-based dMarc Broadcasting Inc. is set to become a part of search engine company Google Inc. -- an agreement that could be worth more than $1.2 billion.

Google, based in Mountain View, announced that it would pay $102 million in cash to buy dMarc Broadcasting. Google could pay about $1.14 billion more to dMarc Broadcasting over the next three years if various goals are achieved.

DMarc Broadcasting, a privately-held company, maintains an automated service that aids advertisers looking to buy airtime on radio stations. In a statement, Google vice president of advertising sales Tim Armstrong said the buy would allow Google to connect its own network of advertisers to dMarc Broadcasting’s system.

Newport Beach’s dMarc Broadcasting was founded in 2002. The firm’s chairman and chief executive is Chad Steelberg. His brother, Ryan Steelberg, is dMarc Broadcasting’s president. According to dMarc Broadcasting’s website, the brothers founded a company called AdForce that was sold to Massachusetts-based CMGI Inc. for about $500 million.

The brothers also founded a company called Winfire Inc. The Los Angeles Times reported in March 2001 that Winfire shut down and laid off most of its staff. Winfire provided free Internet service to customers who agreed to give their personal information to advertisers.

Phone calls to dMarc Broadcasting were directed to Google on Tuesday. Google officials could not be reached for comment.