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.

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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.

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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

Millennial Media (MM) - profile

Millennial Media is the second-largest mobile advertising platform company. Millennial Media technology, tools and services help developers maximize their advertising revenue. 

• 14 May 2012: Millennial Media (MM) slumped 9.1 percent to $14.05. The company forecast sales in 2012 will be no more than $176 million, falling short of the average analyst estimate of $202.8 million.
• In February 2012, its platform reached over 300 million users worldwide, including approximately 140 million users in the United States. 
• More than 30,000 apps are enabled by their developers to receive ads delivered through its platform, and the Company can deliver ads on over 7,000 different mobile device types and models. 
• Its platform is compatible with all major mobile operating systems, including Apple iOS, Android, Windows Phone, Blackberry and Symbian. 
• In February 2012, it processed over 45 billion ad impressions. 

On May 6, 2011, the Company acquired 100% interest of Condaptive, Inc.

The Company’s technology and data platform, known as MYDAS, determines in real-time which ad to deliver.

Millennial Media offers audience reach, targeting capabilities and the opportunity to deliver interactive and engaging ad experiences to consumers on their mobile connected devices. The Company’s developer base includes mobile Web publishers, such as CBS Interactive and The New York Times, and app developers, such as Zynga, Rovio and Pandora, as well as other developers, such as UberMedia and Gogii. Its advertiser clients include advertising agencies and brands, including 23 of the top 25 national advertisers as ranked by Advertising Age magazine, or Ad Age, based upon United States ad. During the year ended December 31, 2011, approximately 10% of the Company’s revenue was derived from outside of the United States.

Address

2nd Floor, Suite, Signature Building 2400 Boston Street
BALTIMORE, MD 21224
United States

Millennial Media started trading on the NYSE

Millennial Media Inc.’s top executives became instant millionaires Thursday following the Baltimore mobile advertising company’s successful initial public offering.

Paul Palmieri, wearing a green tie and glasses, stands on the floor Thursday of the New York Stock Exchange.

Shares opened at $13 apiece and nearly doubled to $25.20 as of noon Thursday. That means within hours of the stock offering, CEO and co-founder Paul Palmieri’s net worth had soared.
Palmieri sold 394,544 shares, worth $5.1 million, as part of Thursday’s IPO. But after the offering Palmieri will still own nearly 6.7 million shares of the company, which as of Thursday afternoon were worth $168 million.

Chris Brandenburg, co-founder and chief technology officer, will hold 5.5 million shares worth $137.3 million. Stephen Root, chief operating officer, owns 1.86 million valued at $46.8 million.

Milliennial (NYSE: MM) on Thursday issued 9.2 million shares, with another 1 million offered by selling stockholders. Underwriters also had a 30-day option to purchase an aggregate of up to an additional 1.53 million shares.

IPOs this week (26 March 2012): 10 companies scheduled

The following companies are scheduled to IPO this week:

1. Annie's (BNNY), which is a leading organic and natural packaged food company known for its mac-n-cheese, plans to raise $75 million by offering 5.0 million shares at a price range of $14.00 to $16.00. At the midpoint of the proposed range, Annie's would command a market value of $263 million. Annie's, which was founded in 1989, booked $135 million in sales over the last 12 months. The Berkeley, CA-based company plans to list on the NYSE under the symbol BNNY. Credit Suisse and J.P. Morgan are the joint bookrunners on the deal.
2. CafePress (CPRS), which has e-commerce sites where customers create, buy and sell personalized products, plans to raise $77 million by offering 4.5 million shares at a price range of $16.00 to $18.00. At the midpoint of the proposed range, CafePress would command a market value of $304 million. CafePress, which was founded in 1999, booked $175 million in sales over the last 12 months. The San Mateo, CA-based company plans to list on the NASDAQ under the symbol CPRS. J.P. Morgan and Jefferies & Co. are the joint bookrunners on the deal.    Mar 28, 2012 update: CafePress changed its ticker from CPRS to PRSS.
3. Enphase Energy (ENPH), which is a leading provider of microinverter solutions for the solar industry, plans to raise $80 million by offering 7.3 million shares at a price range of $10.00 to $12.00. At the midpoint of the proposed range, Enphase Energy would command a market value of $435 million. Enphase Energy, which was founded in 2006, booked $150 million in sales over the last 12 months. The Petaluma, CA-based company plans to list on the NASDAQ under the symbol ENPH. Morgan Stanley, BofA Merrill Lynch and Deutsche Bank Securities are the joint bookrunners on the deal.
4. GasLog (GLOG), which operates 14 carriers for natural gas shipping, plans to raise $400 million by offering 23.5 million shares at a price range of $16.00 to $18.00. At the midpoint of the proposed range, GasLog would command a market value of $1.07 billion. GasLog, which was founded in 2001, booked $66 million in sales over the last 12 months. The Monaco-based company plans to list on the NYSE under the symbol GLOG. Goldman, Sachs & Co., Citi, J.P. Morgan and UBS Investment Bank are the joint bookrunners on the deal.
5. Luca Technologies Inc. (LUCA), which uses biotechnology to create and produce coalbed methane (natural gas), plans to raise $102 million by offering 8.5 million shares at a price range of $11.00 to $13.00. At the midpoint of the proposed range, Luca Technologies Inc. would command a market value of $352 million. Luca Technologies Inc., which was founded in 2003, booked $1 million in sales over the last 12 months. The Golden, CO-based company plans to list on the NASDAQ under the symbol LUCA. Citi, Piper Jaffray and Raymond James are the joint bookrunners on the deal.
6. Merrimack Pharmaceuticals (MACK), which uses its Network Biology system to discover and develop cancer treatments, plans to raise $100 million by offering 14.3 million shares at a price of $7.00. At the midpoint of the proposed range, Merrimack would command a market value of $737 million. Merrimack, which was founded in 1993, booked $34 million in revenue over the last 12 months. The Cambridge, MA-based company plans to list on the NASDAQ under the symbol MACK. J.P. Morgan is the bookrunner on the deal.
7. Millennial Media (MM), a second largest mobile advertising platform in the US, plans to raise $102 million by offering 10.2 million shares at a price range of $9.00 to $11.00. At the midpoint of the proposed range, Millennial Media would command a market value of $818 million. Millennial Media was founded in 2006. The Baltimore, MD-based company plans to list on the NYSE under the symbol MM. Morgan Stanley, Goldman, Sachs & Co. and Barclays Capital are the joint bookrunners on the deal.
8. Regional Management (RM), which offers installment, auto and furniture/appliance loans to underbanked consumers, plans to raise $76 million by offering 4.2 million shares at a price range of $17.00 to $19.00. At the midpoint of the proposed range, Regional Management would command a market value of $226 million. Regional Management, which was founded in 1987, booked $105 million in sales over the last 12 months. The Greenville, SC-based company plans to list on the NYSE under the symbol RM. Jefferies & Co. and Stephens Inc. are the joint bookrunners on the deal.
9. Rexnord Corporation (RXN), which manufactures power transmission and water management products, plans to raise $450 million by offering 23.7 million shares at a price range of $18.00 to $20.00. At the midpoint of the proposed range, Rexnord Corporation would command a market value of $1.87 billion. Rexnord Corporation, which was founded in 1891, booked $1.88 billion in sales over the last 12 months. The Milwaukee, WI-based company plans to list on the NYSE under the symbol RXN. BofA Merrill Lynch, Goldman, Sachs & Co., Credit Suisse and Deutsche Bank Securities are the joint bookrunners on the deal.
10. Vocera Communications (VCRA), which provides a mobile communications platform for hospitals and healthcare facilities, plans to raise $75 million by offering 5.8 million shares at a price range of $12.00 to $14.00. At the midpoint of the proposed range, Vocera Communications would command a market value of $283 million. Vocera Communications was founded in 2000. The San Jose, CA-based company plans to list on the NYSE under the symbol VCRA. J.P. Morgan and Piper Jaffray are the joint bookrunners on the deal.

Last week, there were 7 IPO pricings. ExactTarget (ET), which provides on-demand interactive marketing solutions to 4,700 clients, was the week's winner, ending up 39% from its IPO price.

Millennial Media Sets $75 Million IPO

Baltimore – Millennial Media, the Baltimore-based developer of an independent mobile ad platform, late Thursday filed with the Securities and Exchange Commission (SEC) to raise up to $75 million in a proposed initial public offering (IPO).

The company has yet to disclose details of the offering, such as the number of shares to be sold or their expected price range. Morgan Stanley, Goldman Sachs and Barclays Capital will act as underwriters.

Millennial‘s technology, tools and services are designed to help mobile app developers maximize their ad revenue, increase the number of users of their apps and gain insight about their users. IDC reports that Millennial has 17 percent of the U.S. mobile display advertising market, making it second only to Admob. And as AdWeek notes, unlike Admob or iAd, Millennial isn’t affiliated with a specific operating system or device.

For advertisers, the company’s platform instantly determines which ad to deliver, as well as to whom and when. In December, the platform reached approximately 200 million unique users worldwide, with about half in the U.S. The company generated $69.1 million in revenue and a net loss of $417,000 during the nine months ended Sept. 30, up from revenue of $29.1 million and a loss of $5.4 million during the same period in 2010.

Related links:

http://www.millennialmedia.com