Google (GOOG) has just announced that it has acquired AdMob, the mobile ad platform that has been especially popular on the iPhone, for $750 million. This is a big win for the company’s early investors, which include Sequoia Capital and Accel Partners (this is a huge day for Accel — they were also investors in Playfish, which was just acquired by EA). More recent investors include DFJ and Northgate Capital.

AdMob founder Omar Hamoui sent the following letter to customers:

Friday I detailed my quest to find the throngs of Droid fans who had woken up at the crack of dawn to grab a place in line before Verizon (VZ) unleashed the phone to the masses. Yet despite reports of lines elsewhere, I failed — the Verizon store in Palo Alto was a ghost town, as was the Best Buy (BBY) down the street. Some commenters took my story and similar reports as an indication that the Droid’s launch had bombed, doomed to play out the same fate of the numerous supposed ‘iPhone killers’ before it. It looks like they may be wrong — that store sold over 70 Droids Friday, according to one of its employees.

Saturday I returned to the Verizon store where Friday’s quest began, looking to get my hands on one of the nifty docking stations that turns your Droid into a desktop clock/multimedia station. And while I expected a handful of other customers to be in the store, I was taken aback by just how crowded it was — each of the registers was busy ringing up a customer while others waited their turn, three people were standing in line just to touch the demo Droid unit, and I had to put my name on the list to talk to someone. When I asked one of the employees if they were selling a lot of Droids, his somewhat breathless response was “Yeah, a lot. Over 70 yesterday, we got a shipment of another 100 in today.” Oh, and they were out of both the dock I had come for and spare batteries. Maybe the lack of an early morning line wasn’t so damning after all.

Today is Droid day — an event that I, like many tech bloggers, have been looking forward to for quite some time. Unlike some people, I wasn’t graced with a test Droid last week, so I was forced to go out and get one the old fashioned way: by getting to the store as early as possible, before the precious devices sold out. And while I was concerned about falling prey to a supply shortage, a part of me still hoped there would be many others like me, helping justify my early morning rise. These are my notes as I searched for the unexpectedly elusive Verizon Droid line.

5:30 AM. I woke up this morning to the soothing chimes of my over-priced alarm clock, took a look at the ungodly hour, and immediately sank back into my pillow. It wasn’t until my second alarm (strategically positioned far out of arm’s reach) kicked in that I remembered the task at hand: Droid day.

Google (GOOG) has just debuted a new form of advertising called AdWords Comparison Ads — a special kind of ad that will prompt users to view a list of sponsored products in a structured format. To get started, Google is running the ads for queries related to the mortgage market, though it has plans to eventually expand beyond that. The ads are in a limited rollout for now, with only some users in some states seeing them.

Here’s how Google describes the new ad type:

Earlier Tuesday Sun Microsystems (JAVA) announced that it would be cutting 3,000 members of its workforce, less than a year after the company announced plans to lay off up to 6,000 of its employees. Sun blamed the latest wave of layoffs on delays involved in Oracle’s acquisition of the company, which was annouced last April but is currently being held up by European regulators.

Sun says that it will be eliminating the jobs over the course of the next year in locations worldwide, and that the cuts have already begun. There are reports that there may be even more cuts once the acquisition is complete.

Over the last few weeks there has been an increasing amount of buzz about an unannounced Motorola smartphone due to come out some time between late October and early December. Rumored specs include a powerful OMAP3430 processor, 5 megapixel camera, slideout QWERTY keyboard and touch screen, all housed in a super-compact package and running Android 2.0. A handful of potential names have swirled around, included the Sholes and the Tao, but tonight Verizon (VZ) has made it perfectly clear what the upcoming phone will be called: Droid. And Verizon is positioning it to be a direct threat to the iPhone in a new advertising campaign it launched at the site DroidDoes.com.

Verizon isn’t pulling any punches: it calls out basically every major weakness on the iPhone, from its inability to run background applications to the App Store’s walled garden. The site kicks off with a stream of things that the iPhone can’t do, mimicking the black text-on-white background commonly seen in Apple ads but replacing it with statements like iDon’t run simultaneous apps. After a handful of these, the site kicks you to a page with the heading “DroidDoes”, with a banner rotating through a number of the Droid’s features that include Android 2.0, background tasks, and video recording support. Some of the differences mentioned, like the Droid’s inclusion of a physical keyboard, are really a matter of personal preference. Others, aren’t. For one, Droid can claim to run on “The Network”, which runs circles around AT&T (T).

The back-and-forth between AT&T (T), Google (GOOG), and the FCC over Google Voice’s blocking of some rural telephone numbers continues, and it’s getting even nastier. AT&T’s latest letter to the FCC attempts to undermine Google’s recent argument that it’s blocking exorbitantly expensive calls to some numbers in part because they are associated with sex lines. In fact, AT&T says, some of the numbers being blocked include an ambulance service, church, Benedictine nuns, doctors, and more. Oh, and that’s not AT&T’s only problem with Google — it also thinks that the FCC should consider regulating the search giant on the web as well.

The letter (which we’ve embedded below) is long, first detailing in depth AT&T’s problems with Google Voice, which it says should be held to the same rules as AT&T and other tradional carriers are. The letter then goes on a lengthy argument making the case that if the FCC fails to regulate Google now, the search giant could use its “gatekeeper control” over the Internet to block access to applications:

As the most popular video site on the planet, YouTube has a lot of content to present to users at any given time (the site says that 20 hours of footage are uploaded every minute). That poses a challenge to premium content owners and other content creators looking to attract attention, which is why YouTube also offers a premium ‘Promoted Videos’ feature that lets you pay to expose your video to other users. And now, it’s making it easier to launch a Promoted Video campaign: users will now be able to manage their Promoted Videos directly from the AdWords platform.

AdWords is Google’s (GOOG) bread-and-butter ad platform that plenty of brands and businesses already use to place their ads outside of YouTube, so this will help streamline the purchase process. It’s not all about convenience either — advertisers will also be able to use AdWords campaign tools, which are more robust than what YouTube offers.

Over the last few weeks Google (GOOG) has apparently started rolling out a new set of advertising formats on its search results page, introducing product listings that include price and other details in the Sponsored Links sidebar. For example, a query for “shoes” is displaying a list of different shoe models, their prices, and retailers directly within the search results, as opposed to the the more general text links we’ve grown accustomed to, which lack such information. Google is also apparently testing these ads with photos alongside the product listings for some queries.

In the last few months there’s been a lot of news about Google Voice: it’s been blocked from the iPhone (though Apple (AAPL) says it’s still ‘pondering‘ it) and has been the focal point of not one, but two FCC inquiries. But up until now it hasn’t been very easy to actually sign up for the service — you’ve been able to request an invite for some time now, but there’s an unspecified waiting period as Google works through its list. That’s going to change soon, as Google has just announced that it will be distributing invites to people already on Google Voice, which they can hand out to their friends.

Google is starting to hand out the invites beginning Tuesday, though not everyone will get theirs immediately (each person will get three invites to start with). Using an invite is straightforward: you enter the Email address of the friend or family member you want to invite, they’ll get a note from you, and they can immediately gain access to the service.

Head on over to YouTube right now and there’s a minor change that’s sure to catch your eye: the site’s unmistakeable logo has been modified to include a new “1BN” banner, with the words “1 billion views per day!” beneath it. It’s obviously a huge milestone for the site, but it shouldn’t come as much of a surprise — back in June we reported that YouTube was seeing over 1.2 billion views a day, and it’s likely above that by now.

So why the spiffy new banner now? Turns out, it was three years ago to the day that Google (GOOG) acquired YouTube for a whopping $1.65 billion.

Last week doubleTwist, the media management software company with DVD Jon as its CTO, released a remake of Apple’s classic 1984 commercial featuring none other than Steve Jobs as a malevolent dictator. The commercial closed with a promise. “On October 6th, doubleTwist brings you Choice“.

Wednesday, doubleTwist has revealed what it means by that: doubleTwist now includes an integrated Music Store, powered by Amazon’s MP3 Store. But unlike iTunes, this app will let you transfer your files to non-Apple devices. The store includes Amazon’s (AMZN) catalog of over 5 million songs, allowing users to purchase songs either as albums or individual tracks (there’s also plenty of free songs available). From a design standpoint, it’s clear that iTunes served as a big inspiration — if you’ve ever used the iTunes Store before, it will take you all of thirty seconds to figure out how to use this one.

One of the most interesting but under-appreciated processes in building a web site is the amount of testing that goes on to figure out exactly what should go where. Many startups rely on A/B testing as they roll out new features, and the big guys — namely very popular sites like Google (GOOG) and Facebook — conduct extensive usability studies that can involve interviews, eye monitoring, and more. Monday YouTube has revealed some of the action that goes on behind the scenes as it continues to tweak its all-important ‘Watch’ page — the site you see when you’re actually viewing a video on YouTube.

To help gauge the Watch page’s ideal layout, YouTube invited in a number of users and gave them magnets that represented different elements from YouTube and other popular video sites. The results were not surprising, but they present an interesting challenge to YouTube: the vast majority of users chose to streamline their page as much as possible, featuring a large video player, a search box, and a strip of related videos. But the site’s heavy uploaders, who are obviously key to YouTube’s success, tended to favor a more complex site with a greater emphasis on analytics, sharing, and social interaction.

YouTube has just held a conference call to announce that it has negotiated a deal with Warner Music Group (WMG), the major record label that pulled off the world’s most popular video portal after feeling shortchanged by the revenue its videos were driving. Many details of the deal have been rumored for the last few days, and were confirmed accurate: WMG will be putting its full catalog back on YouTube and will have the ability to sell its own advertising against both its premium music videos as well as user generated content that features a WMG song. Revenue will be shared with YouTube but most will be going to WMG. The deal also includes rights to Warner’s Chappell Music publishing arm.

The deal could prove to be a sign of things to come for YouTube’s premium content, especially since the site has left the door open to special branding on Warner’s music pages that would make it clear who the content owner is. YouTube says that it’s working with WMG to define the optimal experience for the user and the artist, and this may well wind up looking significantly different from YouTube’s standard viewing page.

Friday, news broke that AT&T (T) had filed a letter with the FCC asserting that Google (GOOG) is violating net neutrality principles with Google Voice by preventing users from calling certain numbers. Google has wasted no time in posting a response to its Public Policy Blog to defend itself against the accusations.

For those who missed the initial letter: AT&T has long had to deal with local phone carriers who charge exorbitant prices to long-distance companies to connect their calls. These local carriers are further exploiting the system by partnering with phone sex operators and similar services to maximize the number of calls to these high-priced numbers. AT&T has tried to restrict such calls but was barred from doing so, and it’s angry that Google Voice — which does restrict calls to some of these pornographic numbers to save money — is getting away with it.

Google (GOOG) has released a full version of its response to the FCC’s inquiry on Apple’s (AAPL) ban of Google Voice from the App Store, revealing the answer to ‘Question 2′ that had been redacted from the letter that was released in August. Question 2 asked Google to detail Apple’s stated reasons for rejecting both Google Voice and Google Latitude from the App Store, as well as any communication that had gone on between the parties involved. Google’s response? Apple told them the same line about “duplicating the iPhone’s core functionality” that it was giving third party developers.

No incriminating back-alley conversations. Google wasn’t trying to hide anything that could have hurt it in any way. It was just trying to give Apple a chance to take the high road. Instead, Apple apparently lied through its teeth to the FCC.

Thursday Palm (PALM) held its conference call for its Q1 FY 2010 results, during which it outlined the performance of its roster of smart phones. It’s a day that has been long awaited by investors, who are eager to see how the company’s flagship Palm Pre has actually been performing. And the results are in, sort of. Across its entire smartphone line Palm shipped 823,000 units this quarter, and its carrier partners “sold through” 810,000, of which the “vast majority” were the Palm Pre (the others were older Treos). In other words, Palm still isn’t talking.

Up until now, Palm has remained mum on the sales of the Pre — its flagship phone that launched with much fanfare earlier this summer, but was quickly overshadowed by the iPhone 3GS launch. That didn’t change Thursday, but we can glean some information from Palm’s statements: the term “vast majority” doesn’t really mean much, but assuming at least 60% of the sell-through figures were from the Pre, that would equate to more than 486,000 units. That’s more than what some have been expecting (a Bloomberg report cited an analyst predicting 400k units sold, while a MarketWatch report put the consensus at about 500K), and Palm’s overall smartphone sales beat analyst expectations.

A few months ago AOL found a way to fuse AIM, its popular instant messenger client, with the broader messaging systems like Facebook and Twitter that have begun increasingly important on the web. AIM now includes a new tab dedicated to the lifestream — a combination of your friends’ activities on Facebook, Twitter, Flickr, AIM itself, and a variety of other services (think of it as a FriendFeed with integrated chat). Tonight they’re bringing the lifestream to the iPhone with AIM 4.0, which is now live on the App Store for $2.99 (the free version doesn’t currently offer this functionality).

The new iPhone app will let you monitor updates from all the services supported by the desktop version of Lifestream. The app also lets you simultaneously post your AIM status updates to Twitter and Facebook — while the Lifestream was read-only until recently (you couldn’t post messages to services other than AIM), the service recently enabled this functionality.