Millennial Gets FTC Approval for $224M Jumptap Acquisition
Mobile advertising firm Millennial Media says it has recieved regulatory approval of its acquistion of Jumptap from the U.S. Federal Trade Commission.
Millennial described the review of the deal by the FTC as "quick and orderly" and the companies are now confident the transaction will be completed.
After reporting dissapointing second quarter earnings on August 18 that sent shares into a 26 percent dive, Millenial announced that it has agreed to aquire Jumptap.
Under the terms of the agreement, Jumptap shareholders will receive approximately 24.6 million shares of Millennial Media at $9.13, corresponding to approximately 22.5 percent pro forma ownership post transaction.
The total bid for Jumptap figures out to about $224 million.
Jumptap has an audience profile store with over 100 million unique profiles, of which more than 44 million can be reached across various screens – online and mobile. Jumptap supports its audience targeting through partnerships with more than 20 third-party data providers.
Millennial is the largest independent mobile advertising platform, behind larger rivals Google and Apple. The company hasn't had it easy since going public with an IPO price of $13. While the stock initially doubled, it has fallen ever since.
In the second quarter, Millennial missed expectations on $57 million in revenue for the second quarter. Analysts had expected closer to $59 million.
Share of Millennial Media were up 3 percent in early trading to $8.