RIM looking to acquire mobile ad network
updated 11:25 pm EDT, Wed August 18, 2010
Initial talks focused on Millennial Media
Research in Motion is reportedly seeking to acquire a mobile ad network, unnamed sources have told the Wall Street Journal (sub. required). The BlackBerry maker is said to have participated in acquisition discussions with mobile advertising firm Millennial Media and several other companies.
Talks have allegedly stalled due to disagreement over the price of a buyout, as Millennial is asking for between $400 and $500 million. Sources suggest the advertising company may be inflating its price, inspired by the recent purchases of AdMob and Quattro Wireless by Google and Apple.
Google paid $750 million for AdMob, after Apple failed to finalize its own attempt to buy the advertising company. The iPhone maker subsequently bought Quattro Wireless to help build the iAd network that serves advertisements on iOS devices.
RIM's market share in the smartphone arena has continued to slide, falling from 19.1 to 17.8 percent in the past year, according to numbers collected by IDC. The lackluster performance contrasts with the iPhone and Android platforms, which have both continued to strengthen as Apple and Google hone their advertising strategies.
RIM has yet to disclose specific details regarding its plans for a mobile advertising network. Millennial Media CEO Paul Palmieri recently said his company would prefer to make an initial public offering rather than be acquired.
Fresh-Faced Recruit
Joined: May 2010
LOL! Monkey see, monkey do.
RIM has absolutely no clue what they are doing, as evidenced by the completely underwhelming Torch alone. I guarantee you that all they see is Google and Apple running their own mobile ad services, so they figure they have to also. Once they acquire one, they'll be sitting around scratching their heads wondering "Ok. Now what?"