Millennial Media, the global mobile advertising firm headquartered in Canton, announced Tuesday that it will acquire Boston-based mobile advertising platform Jumptap for approximately $210 million in Millennial Media stock.
According to a press release, “Jumptap reaches over 218 million mobile users in the U.S. and over 439 million mobile users worldwide,” and the company “recently has taken a programmatic and mobile-first approach to reaching audiences.”
The acquisition seems to be further positioning for a future Millennial Media cofounder and CEO Paul Palmieri hinted at during April’s Exec TechBreakfast when he said the “app economy is going to take over media.” If apps reign supreme, then Millennial’s acquisition of Jumptap appears to be further positioning in the increasingly large mobile app advertising market, where it ranks second only to Google. By 2015, in-app advertising is expected to hit $7.1 billion in sales.
There is, however, some bad with the good: Millennial Media reported $57 million in revenue during Q2 of 2013, compared to $39 million in revenue during Q2 of 2012, the first quarter following its IPO in spring 2012. But the company lost $3.1 million this quarter. In the same quarter last year, Millennial reported a loss of $2.2 million.
As Business Insider has noted, Millennial keeps making more money but hasn’t quite pulled into consistent profitability yet.
In May, Millennial Media acquired San Francisco-based mobile media buying platform Metaresolver. Since that acquisition, Millennial Media cofounder Chris Brandenburg has since departed the company.
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