Rumor Mill: Microsoft in talks to acquire Millennial Media

Microsoft is reportedly in acquisition talks with mobile advertising network Millennial Media, with a basic agreement said to be in place but not yet finalized. Citing an industry source, Business Insider reports Microsoft and Millennial have been in negotiations for the last two months--the article estimates the mobile ad firm could fetch in excess of $500 million. In an email to FierceMobileContent, Millennial Media said it could not comment on the rumors.

Skeptics question exactly why Microsoft needs to add Millennial Media to its arsenal--the software giant acquired mobile advertising firm ScreenTonic in mid-2007, although Millennial encompasses a far broader audience than Microsoft's existing mobile ad initiatives, reaching more than 80 percent of all U.S. mobile web users.

If finalized, the Microsoft/Millennial Media deal would herald the third major mobile advertising deal in the last six months. In November 2009, Google announced an agreement to acquire AdMob for $750 million--that deal is currently facing intense scrutiny from the Federal Trade Commission. In early January, Apple scooped up Quattro Wireless for $275 million; earlier this month, the computing giant announced plans to introduce its own mobile advertising network, dubbed iAd.

For more on the Microsoft/Millennial rumors:
- read this Business Insider article

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