Google buys AdMob for $750 million as mobile ads get ready for prime time

What would you do if you had $10 billion to play with? If you're Google (GOOG), you drop $750 million on AdMob, a leader in mobile display advertising.

The search giant announced a deal to do just that on Monday, in a clear indication of where it sees the future of its business. Company CEO Eric Schmidt has been explicit in his belief that Google can earn "many times" in mobile advertising what it earns in conventional Web advertising. This move looks like a major bet on that conviction.

The $750 million deal, a stock transaction, is one of the search giant's largest ever, and is further evidence of renewed vigor in the technology and Internet markets. For Google, which has a $175 billion market cap, it's just a drop in the bucket.