In a surprise move turning heads today, Millennial Media just announced it’s acquisition of Jumptap.
The deal effectively unites two very prominent mobile ad companies that now stand to make an even bigger impact on this emerging industry.
According to an announcement from Millennial Media, the deal in question is predominantly a “stock transaction.”
Under the terms of the agreement, based on Millennial Media’s closing share price on August 9, 2013, Jumptap shareholders will receive approximately 24.6 million shares of Millennial Media, corresponding to approximately 22.5% pro forma ownership post transaction. T
Millennial Media’s market platform will now include Jumptap’s offerings, and will result in “consolidation and differentiated scale in the fast-growing mobile ad market.”
The companies’ combined strengths in brand and performance advertising, strategic position as a partner to developers, advances in programmatic and real-time bidding, and the use of data for improved targeting will help its customers and other industry stakeholders maximize the opportunity that mobile presents.
“Millennial Media already runs one of the largest third-party digital media businesses, despite mobile being in its early stages. 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 Paul Palmieri, President and CEO of Millennial Media. “We are thrilled to add Jumptap’s capabilities, their solution set and strong team as part of our mobile advertising business, and look forward to partnering with the team.”