AOL all set to acquire Millennial Media Inc, a Baltimore-based mobile ad platform, for $1.75 per share of common stock which would add up to $238 million. Goldman Sachs provided the financial advice to AOL on the acquisition while LUMA Partners did the same for Millennial Media, which is backed up by Columbia Capital. The deal is expected to be closed by this fall.
The announcement comes soon after the Verizon’s acquisition of AOL for $4.4 billion. As the world of media move towards phone, Verizon’s purchase of AOL looks like a big step for the company in the direction of digital media and marketing. Following that comes the agreement to acquire Millennial Media which offers both mobile advertising services and monetization for mobile content. Also, to have its presence in international markets like Singapore and Japan.
“By Joining AOL, we will be adding additional mobile expertise to AOL’s growing technology assets. I’m excited by what this acquisition means for our shareholders, our employees and our partners,” said CEO of Millennial Media, Michael Barrett. AOL would acquire list of the company’s assets that include TapMetrics, Condaptive, Metaresolver, Jumptap and Nexage. The company has planned to become a wholly own subsidiary of AOL.
Bob Lord, President of AOL said, “AOL is well positioned as consumers spend more and more time on mobile devices, and as advertisers, agencies and publishers become more reliant on programmatic monetization tools. As we continue to invest in our platforms and technology, the acquisition of Millennial Media accelerates our competitive mobile offering in ONE by AOL and enhances our current publisher offering with an ‘all in’ monetization platform for app developers.”
Over years, AOL has evolved slowly to where it is positioned today. It has moved from well-known internet service provider to operating a subscription service platform as well as a scaled global content delivery network and scaled global content brands.