Jumptap shareholders will get 24.6 million shares in the Nasdaq-traded Millennial Media, representing roughly 23 percent of the Baltimore company. All told, the purchase equals about $209 million worth of Millennial shares.
Jumptap, a mobile ad network, picked up $27.5 million in funding 14 months ago (over $120 million to date). It had reportedly planned to go public this year. But with those plans permanently shelved, the Boston-based firm's CEO George Bell will join the Millennial board as vice chairman.
Millennial Media, a mobile ad network that's used by brands such as Procter & Gamble, General Motors and McDonald's, should only strengthen its position in the mobile advertising ecosystem with the pick-up—though Facebook, Google and Twitter have emerged as the new dominant players in the fast-growing space—making the environment far more challenging for ad networks.
"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," said Millennial CEO Paul Palmieri in a release.