Microsoft May Join The Acquisition Party and Buy Millennial Media

In a year that has already been littered with a plethora of mergers and desperately sought buyouts in the mobile space, add another rumor to the pile of yet-to manifest acquisitions, as Microsoft is said to now be in talks with mobile advertising network Millennial...

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In a year that has already been littered with a plethora of mergers and desperately sought buyouts in the mobile space, add another rumor to the pile of yet-to manifest acquisitions, as Microsoft is said to now be in talks with mobile advertising network Millennial Media to acquire the company.

Although rumors of the potential acquisition have only leaked in recent days, Business Insider is reporting that Microsoft may have been in talks with the folks at Millennial for at least eight weeks.

Industry analysts estimate that the mobile ad firm could possibly net as much as $500 million in a deal with Microsoft. For now, no one at Millennial Media – or Microsoft, for that matter – is publicly commenting on the rampant speculation that could ultimately manifest in the public announcement of a done deal in the coming days.

If Microsoft does, in fact, seal the deal, the company will join the stellar likes of Google and Apple, which have also made monumental mobile advertising acquisitions in recent months. Google’s controversial $750 million offer to buy AdMob was followed earlier this year by Apple’s $275 million deal to acquire Quattro Wireless. Apple is now putting their purchase to use in the roll out of Cupertino’s new mobile marketing platform dubbed “iAd.”

While no one is saying the deal is concrete, Microsoft has the money and the need for such an acquisition. And for those very reasons many are expecting a major announcement from Microsoft in the coming days regarding Millennial Media.

At least that’s what the rumor mill is suggesting at this hour…

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4 comments

  1. mobiThinking

    No mobile ad network reveals revenues. People do try to estimate, though this is extremely difficult to do with any sort of accuracy (for all sorts of reasons), so figures should be taken with a large pinch of salt. IDC estimated Millennial Media was around US$50. All stats that Millennial does release e.g. on reach, page impressions are here: http://mobithinking.com/mobile-ad-network-guide/premiumblind#millennial

  2. Mobile1

    Does anyone know what type of revenues Millenial Media has? I am guessing around $10M/year?

  3. Vancouver Search Engine Marketing

    it seems to me that MS is buying this just for the sake of buying and making news. Buying screen Tonic in 07 did not make type of the news that Google did when they bought Admob. Anyway seems to me that in lots of cases MSN is going the right directions but its making wrong decisions along the way.

  4. mobiThinking

    I don’t really follow this one. Microsoft already has a mobile ad network. It bought Screen Tonic in 2007, getting into the game long before Google or Apple. The network services Microsoft’s own mobile properties and some other independent premium portals. While this doesn’t preclude a further acquisition, why would Microsoft choose Millennial Media? It’s bigger than Microsoft Mobile Advertising, certainly in the States which is the majority of Millennial’s business is, but wouldn’t there be quite a lot of overlap geography, publisher wise etc? Why wouldn’t Microsoft be more interested in a network centered in Asia (surely that the place to be for mobile) or Europe? I’d expect Millennial to be more interesting to a company that wants to get into mobile ads in the US, not one that’s already there. You can compare the profiles (and stats) of the two networks here: http://mobithinking.com/mobile-ad-network-guide

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