AOL bought Third Screen Media, a mobile advertising company in February 2007. The price was not disclosed, but rumor has it that they paid about $80 million. Third Screen Media was rolled into AOL’s Platform-A division, the same unit that runs Advertising.com and PubAccess. Now there is another rumor floating around that Third Screen Media is not making as much money as they had hoped so they’ll end up scaling back the service or shut it down completely.
Rather than focusing on brokering advertising on mobile devices, AOL has strength in building mobile content. According to Silicon Alley Insider, they have heard from mobile industry insiders that AOL is not renewing deals with publishers. AOL is losing customers and is focusing more on internal properties. Many Third Screen Media employees have also supposedly been applying to other jobs.
Before being acquired by AOL, Third Screen Media raised $8 million from TD Capital Ventures and Blue Chip Venture Company. During the time of the acquisition, Microsoft was rumored to be involved with bidding for Third Media also.