Jumptap Acquired By Millennial Media For $200M + Millennial Stock

By Bizclik Editor

The August edition of the Business Review USA is now live!

Millennial Media announced on Tuesday that it reached an agreement to acquire privately-held Jumptap, a merger that marries to well-known mobile ad companies.

The agreement, according to the acquisition press release, is a predominantly stock transaction. Jumptap shareholders will receive 24.6 million shares in publicly traded Millennial, giving them 22.5 percent ownership of the company.

“Millennial Media already runs one of the largest third-party digital media businesses, despite mobile being in its early stages,” said Millennial President and CEO Paul Palmieri in the release. “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.”

Read related content: 

Jumptap was founded in 2004 after raising $122 million in funding from investors. According to the slide deck published by Millennial, Millennial saw $177.7 million in adjusted revenue in 2012, while Jumptap saw $63.6 million. Their respective net losses for 2012 were $5.4 million and $13.0 million. The presentation notes that the combination of the companies will result in revenue between $340 million and $350 million.

Millennial/Jumptap Earnings

Mobile ad spend has jumped exponentially in the past year and the acquisition of two major players in the industry corners the market and promises customers a better combined product according to analysts.

George Bell, CEO of Jumptap is joining the Millennial Media board of directors as Vice Chairman. Millennial also noted that the combined stock and cash components of the transaction value Jamptap at $232 million.

Share

Featured Articles

DEI done right: Brook Sims, COO, MAC Diversity Recruiters

Passionate about helping others find their voice, diversity leader and COO Brook Sims talks powerful leadership, diverse teams and being a change agent

Q&A: China’s ecommerce innovator Jeff Li, CEO of Shoplazza

Named in Fortune China’s 40 under 40 for 2022, former Baidu head Jeff Li is the entrepreneurial founder and CEO of ecommerce platform Shoplazza

How hybrid work is revolutionising the physical office

As hybrid work models roll out worldwide, the purpose of the office is changing with collaboration, connection and networking taking centre stage

Trailblazer: Shanique Bonelli-Moore, DEI chief at Clorox

Sustainability

Dean Forbes – the Forterro CEO aiming for the moon

Leadership & Strategy

Why becoming a B Corp is good for business

Sustainability