As rumored, Google has in fact agreed to buy in-game advertising startup AdScape for a reported $23 million, though the deal is apparently not completely closed, reported Red Herring last week.

Yet given that the company is a startup that has not yet announced any game publishers as customers, Google likely gains little beyond a few potentially interesting patents, according to the article. Moreover, "there is a whole world of difference between the form of advertising done by Google and Madison Avenue," one source familiar with the in-game ad business said.

Comparing Google's text-based ads with the rich media used in videogames, the source said "everyone appreciates the dollars Google can throw around, (but) when it comes to [in-game ad] experience they just don't have it."

Sources said the company's executive team would likely remain together until the start of March, when selected staff would move to Google HQ in Mountain View. Executives likely to make the move include CTO Dan Willis, Chairman Bernie Stolar, and VP of Marketing Eva Woo, but details have yet to be confirmed.