Press Release: Google Acquires Applied Semantics

IAR: Google Steals Applied Semantics Away from Overture

Microdoc News: How Google Competes: Acquisition Reveals Strategy

IAR writes:

Search engine upstart Google Wednesday said it has acquired Applied Semantics (formerly known as Oingo) for an undisclosed amount.

The deal is significant considering Applied is an affiliate and technology partner of Google's paid advertising service rival Overture. […]

"Applied Semantics is a proven innovator in semantic text processing and online advertising," said Google co-founder Sergey Brin in a statement. "This acquisition will enable Google to create new technologies that make online advertising more useful to users, publishers, and advertisers alike."

More fun on the SEM front. I'd tell you this sector is rocking at the moment.