Rumor Mill: Microsoft may buy Third Screen Media

Microsoft's MSN unit is in talks with Third Screen Media, a mobile advertising provider for several major brands, reports the Wall Street Journal. While most large-scale mobile marketing efforts have focused on SMS, Third Screen Media is one of the leading providers of mobile Web ads. The privately-held company counts USA Today and The Weather Channel as clients. It's easy to see why Microsoft would want Third Screen Media. Google grew from a grad school project into a major competitor thanks in a large part to the success of its Web advertising service. Common wisdom is that Google is planning a major expansion into mobile technology, which would almost certainly include a mobile advertising component. Third Screen Media could be a crucial foothold for Microsoft. A Microsoft GM said the mobile ads market has "tremendous potential" for the future. For similar reasons, Microsoft purchased in-game advertising firm Massive just a few weeks ago.

For more on Microsoft's talks with Third Screen Media:
 - read this WSJ article (sub. req.)