Millennial Media, Inc. (NYSE:MM) Drops After Jumptap Agreement, Sales Shortfall


Dallas, Texas 08/15/2013 (Financialstrend) –  Millennial Media, Inc. (NYSE:MM) declined the most in 6 month period after registering slower-than-anticipated sales expansion and announcing proposals to get hold of Jumptap Inc., a participant in the market for mobile-device advertisement.

The company’s scrip declined 19% to rule at $6.90 at the close in New York, marking the largest one-day declination since February 20.

The firm is counting on the Jumptap deal to help it mount a superior challenge to Google Inc., the biggest seller of mobile advertisements.

Still, the acquirement comes at a steep value for Baltimore-based Millennial, whose personal market estimation is $555 million — with 81.4 million scrips outstanding. The firm will pay around $200 million for the said company.

“It’s novel data for the market, so I believe the choppiness you witness will originate from a little bit of improbability as we put more out there,” Millennial CEO Paul Palmieri stated.

The company’s sale facts surged 45% to $57 million during the second quarterly period, the company stated this in a declaration. That failed to meet up the average analyst approximation of $59.2 million, as per facts compiled by media people.

Excluding some items, earnings stood at 2 cents per share, hitting a projected 1-cent loss.

Deal Conditions

The company’s investors will get around24.6 million Millennial Media scrips, based on their August 9 value, as per a separate declaration. The scrip marked its closure at $9.13 that day. The company’s shareholders had originally proposed for an IPO before Millennial went public during 2012 and began slipping in the securities market.

Millennial is the only publicly traded firm concentrated exclusively on mobile publicity. The performance of its scrip that has now dropped by around 50% since the initial public offering during March last year, has cast a shadow on similar firms beating public markets.

Jumptap’s Backers

Founded in the year 2005, Jumptap lifted up $121.5 million in business enterprise funding as of last year.