The largest seller of advertising space on smartphones and other mobile devices, Milennial Media Inc went public last year. After the IPO, the cost of services for the company has fallen by 47% and is cheaper for companies like Yahoo Inc and Microsoft Corp to utlilize.
This lowered cost would help companies expand their market share through mobile advertising. The net worth of the company at the time of the IPO was at US$550 million and just this month, share prices fell to their lowest after earlier forecasts of 55% growth for the year. Since the company is the largest independent mobile advertising service provider, there may be interest from many technology companies seeking to gain a larger market share in one of fastest growing areas of digital advertising.
According to researcher EMarketer Inc, the US spending for mobile device advertising is expected to reach US$7.3 billion for 2013, a significant increase from US$4.1 billion in 2012. Many experts say that the declining shares of the company would surely attract companies such as Yahoo and Amazon, according Needham&Co. IPOPlaybook.com includes Microsoft as possible interested parties. Facebook, according Falcon Point Capital LLC can also draw interest.
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