Another one bites the dust.
Online advertising company ValueClick picked up one of the remaining independent mobile advertising networks Greystripe for $70 million in cash. Considering that Greystripe raised $18 million and that its rivals AdMob and Quattro were picked up for $750 million and $275 million respectively, it isn’t a fantastic outcome.
But Greystripe’s investors, which include Steamboat Ventures, Monitor Ventures, Peacock Equity, and Incubic Venture Capital, will at least get their investment back. The Greystripe team also has an undisclosed retention package.
ValueClick said Greystripe will contribute about $24 to 26 million in revenue for the rest of the year and $2 to 3 million in adjusted-EBITDA (or net income from continuing operations before interest, income taxes, depreciation, amortization, and stock-based compensation expenses). Considering that there are eight months left in the year, those numbers suggest an annual revenue run-rate of $36 to 39 million and annual adjusted-EBITDA of $3 to 4.5 million.
Greystripe acquisition comes as Millennial Media is said to be preparing for an initial public offering and as Jumptap just raised $20 million in funding (which is said to be from its previous investors).