initial public offerings (IPOs) trading on American exchanges

Thursday, September 3, 2015

AOL to buy Millennial Media for about $250 million

Fresh off its $4.4 billion acquisition of AOL, Verizon Communications Inc. is beefing up its ad technology with the purchase of mobile advertising company Millennial Media Inc.
Executives at AOL say the deal, valued at $238 million including net debt, cements a great ad-technology offering.


With Verizon’s data on its wireless customers, AOL’s large base of advertisers and ad-selling software and Millennial Media’s access to a big pool of mobile ad inventory, “we can offer an alternative to Facebook and Google,” said AOL President Bob Lord.
The deal’s price is a sign of how some of the hype around mobile ad networks has faded. Millennial Media was valued at more than $1 billion a few years ago. Its initial public offering price in 2012 was $13 and it is selling to Verizon for $1.75 a share.


The offer is a 31% premium to Millennial Media’s closing price on Wednesday of $1.34 a share. On Thursday, Millennial Media’s shares rose almost 30%, or 40 cents, to $1.74 in 4 p.m. trading.

Millennial Media share price history

IPO sale price - $13

Peak price - $27.90 on March 29, 2012, the day it first traded

Latest 52-week high - $2.40

Latest 52-week low - $1.18

Wednesday's close - $1.34

AOL's cash offer - $1.75

Thursday's close - $1.74

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