Leading US mobile advertising and data brand, Millennial Media, will expand its enterprise by taking over mobile media buying and targeting platform, Metaresolver.
Despite the company’s recent plunge in shares after its quarter-four 2012 earnings missed expectations, it is still ploughing ahead with the purchase.
Independent Baltimore-based Millennial Media, which helps app developers and mobile website publishers maximise their ad revenue and gain audience insights, has signed a definitive agreement, for the ‘all-cash transaction’.
Acquisition of the privately held San Francisco-based Metaresolver, is subject to the satisfaction of various customary closing conditions.
President and CEO of Millennial Media, Paul Palmieri, said: “Accurately gathering and categorising this data can be the difference between serving an ad that is relevant to a consumer and one that is not.
“Metaresolver’s data-driven approach and technology will allow our platform to go one step further and provide additional value to our advertiser and developer partners.”
News of the takeover follows Millennial's fourth-quarter revenue results which increased to $58.0 million, compared to $34.5 million in Q4 2011. Despite the year-on-year increase of 68%, the results fell far below the previous quarter's 88% increase.
Share Price Drop
According to finance site Bloomberg, after the announcement of its latest revenue results, Millennial Media’s shares dropped 38% to $8.95 at the close in New York.
Millennial Media, which competes with the likes of Google and Apple in helping website owners and app developers sell mobile ads, said that for the full year 2013, it expects revenue to be in the range of $270 million to $280 million – below the $288.75 million predicted by analysts.