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Mobile advertising consolidates as Millennial Media bids $225 million for Jumptap

All-share deal awaits shareholder approval
Mobile advertising consolidates as Millennial Media bids $225 million for Jumptap
Date Type Companies Involved Size
Aug 14, 2013 acquisition Jumptap Millennial Media $225m

Mobile advertising network Millennial Media (NYSE:MM) is looking to buy rival Jumptap.

The proposed deal will be paid via 24.6 million Millennial shares.

It's being measured on their 9 August price of $9.13, valuing the deal at around $225 million.

Millennial's shares dropped 8 percent on the news, ending the day at $8.50.

Plan B

The company floated on the New York stock exchange back in March 2012 at a price of $22.

The shares have been under the water ever since.

The closing of the acquisition is subject to the satisfaction of various conditions, including the approval of Millennial stockholders.

Consolidation move

Based in Boston, Jumptap has strong data on around 100 million unique users, with Millennial saying it can reach at least 44 million of these across multiple screens; something that makes them more valuable.

Millennial also pointed out Jumptap had received 55 patents with another 50 pending. It is particularly strong in terms of its real-time bidding infrastructure.

The deal - if closed - will give the combined entity scale in the fast-growing mobile advertising market, combining both brand and performance advertising.

"Jumptap's expertise in performance, cross-screen, real-time bidding and third-party data fit well with, and provide incremental scale to Millennial Media's existing platform," said Millennial's CEO Paul Palmieri.

Previously it had been thought that Jumptap was planning its own IPO, although the poor performance of Millennial's shares during 2012 and 2013 made this unlikely in the near-term.

[source: Millennial Media]