Millennial Media acquiring Jumptap in bid to topple Google

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Millennial Media (NYSE:MM) is acquiring rival mobile advertising network Jumptap, a move to challenge Google's (NASDAQ:GOOG) dominance in the segment.

Per terms of the deal, valued at $196.8 million, Jumptap shareholders will receive approximately 24.6 million shares of Millennial Media, corresponding to 22.5 percent ownership. Millennial Media President and CEO Paul Palmieri will remain in his current post, while Jumptap CEO George Bell will join the Millennial board as vice chairman.

Millennial Media controls 18 percent of the mobile advertising market, while Jumptap accounts for 10.7 percent, according to IDC data--their combined 28.7 percent is roughly on par with Google, Palmieri told investors Tuesday, according to Business Insider. In all, Jumptap touts more than 100 million unique user profiles and audience targeting relationships with more than 20 third-party data providers. The firm also boasts 55 issued patents and another 50 patents that are still pending.

Millennial Media also reported second quarter results Tuesday, posting revenues of $57 million, up from $39.4 million in the year-ago quarter--an increase of 45 percent. Losses nevertheless grew from $2.2 million in the second quarter of 2012 to $3.1 million in the most recent quarter.

Millennial Media now reaches more than 450 million monthly unique users globally, including approximately 160 million monthly unique users in the U.S. Developers have integrated Millennial's platform into more than 45,000 applications, and the firm has created 450 million proprietary, anonymous user profiles.

For more:
-read this release
-read this Business Insider article

Special Report: Wireless in the second quarter of 2013

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