Now we have confirmation that that was the case, as AOL announced on Thursday that it has signed an agreement to buy mobile ad network Millennial Media to expand its reach into mobile.
The proposed sale introduced Thursday of Millennial to AOL for about $248 million money, one-eighth of its market worth on the day of its preliminary public, providing demonstrates the shifting nature of the fashionable promoting market, analysts and observers stated. AOL will also increase its mobile brand advertising scale across ONE, and it will have access to approximately one billion unique users globally.
The deal also comes on the heels of Verizon’s acquisition of AOL, giving the carrier a slate of online video content and programmatic ad systems that are expected to play a big role in go90, Verizon’s coming “mobile-first” video offering.
AOL will develop new features with the acquisition of Millennial Media including adding world-class engineering, sales and product talents that specialize in mobile to AOL.
AOL said in a statement that the acquisition strengthens their mobile capabilities and (remarkably) underlines its position as the “first global mobile media technology company”.
According to a report from Mike Wiser of MAW, AOL’s acquisition reflects the company’s “continued investment in cross platform programmatic technology for marketers and publishers”.
AOL is buying Millennial Media for $1.75 per share, a 31 percent premium to Millennial Media’s closing price on Wednesday of $1.34 a share. The law firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
Millennial Media’s most recent results for the second quarter showed a net loss of Dollars 15.5 million on revenues of USD 65.8 million, both slightly down on the year-earlier figures.
Millennial Media CEO and President Michael Barrett acknowledged in August during an earnings call with investors that the ad tech company was exploring strategic options.
Three years later, cellular units command much more of the shoppers’ time, however Millennial faltered within the face of competitors from the likes of Fb, Twitter and Google, which transformed their large audiences into vital promoting income.
AOL says the deal is expected to close this fall, subject to regulatory approvals. Bob Lord, president of AOL, said that they will be able to offer an alternative to Facebook and Google.
After AOL was recently picked up by Verizon Communications Inc.
AOL already had something of a mobile ad business, but it was limited to the mobile web.