Millennial Media Acquires Jumptap For Over $200 Million

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Millennial Media has announced that they have acquired Jumptap.  The acquisition was a predominantly made in Millennial Media stock.  Jumptap shareholders will receive 24.6 million shares in Millenial Media, which gives them around 22.5% ownership in the company.  The combined stock and cash components of the transaction values Jumptap at around $232 million.

Millennial Media trades on the NYSE stock exchange and has a market cap of over $559 million.  Jumptap chief executive officer George Bell will be joining the Millenial board of directors as the vice chairman.

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

Jumptap started in 2004 and raised $122 million in total funding from investors like General Catalyst and Redpoint.  Jumptap was considering going public last year.  Millennial reported $177.7 million in adjusted revenues for 2012 and Jumptap reported $63.6 million.  Millennial saw net losses of $5.4 million and Jumptap saw net losses of $13 million.  The combined companies will see revenues of between $340 million and $350 million with adjusted EBITDA at between $1 million and a loss of $1 million.

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