Millennial Media Files to Go Public

By Monica Gleberman January 10, 2012

Millennial Media has been one of the largest independent ad networks for years, becoming the second largest mobile ad network operator behind that of ultimate technology rival Apple. Millennial Media sent out a press release saying that it has filled with the SEC to launch an initial public offering (IPO).

An IPO is the first sale of stock by a private company to the public. Small or large companies can take advantage of an IPO to raise expansion capital and become publicly traded companies. If Millennial Media has an IPO, it will allow the company to tap into a wide pool of investors to provide itself with capital for future growth, repayment of any debt it may have acquired over the years, or create some reserves in working capital accounts.

The company released a statement saying, “Millennial Media, Inc. announced today that it has filed a registration statement Form S-1 with the U.S. Securities and Exchange Commission (SEC) relating to a proposed initial public offering of shares of its common stock.”

The company made almost $70 million in revenue in early of 2011, but ultimately felt the heat of the recession and ended the year with a net loss of over $400,000. When you add in the loss associated from the shareholders, the company had a total gross lost of more than $4 million, making 2011 the third year in a row that the company has failed to make a profit.

After announcing the company has intentions to go public, the company stated that it’s looking to raise around $75 million. It might seem like a large amount, but the company has been revived in the past, raising a similar amount from investors. In the past five years, investors have helped keep the company afloat by raising more than $65 million to keep Millennial Media in business.

Millennial’s ad network reaches 85 percent of mobile web users, according to the company, and its ads are viewed 40 billion times every month. The company has had cash flow issues and financial troubles that it hopes to move past.

Morgan Stanley, Goldman Sachs, and Barclays Capital have joined together to help Millennial Media and will serve as the main underwriters in equity, debt, and/or the security deals for the company.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO East 2012, taking place Jan. 31-Feb. 3 2012, in Miami, FL. ITEXPO offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. For more information on registering for ITEXPO registration click here.

Stay in touch with everything happening at ITEXPO. Follow us on Twitter.

Edited by Rich Steeves

Contributing Writer

Related Articles

Compliance: Hope Is Not a Plan

By: Special Guest    8/1/2018

Internal misalignment between compliance and business teams can lead to major problems for organizations seeking to implement new digital communicatio…

Read More

Modern Moms Shaping Influence

By: Maurice Nagle    7/19/2018

Everyone knows Mom knows best. The internet is enabling a new era in sharing, and sparking a more enlightened, communal shopping experience. Mommy blo…

Read More

Why People Don't Update Their Computers

By: Special Guest    7/13/2018

When the WannaCry ransomware attacked companies all over the world in 2017, experts soon realized it was meant to be stopped by regular updating. Even…

Read More

More Intelligence About The New Intelligence

By: Rich Tehrani    7/9/2018

TMC recently announced the launch of three new artificial intelligence events under the banner of The New Intelligence. I recently spoke with TMC's Ex…

Read More

Technology, Innovation, and Compliance: How Businesses Approach the Digital Age

By: Special Guest    6/29/2018

Organizations must align internally to achieve effective innovation. Companies should consider creating cross-functional teams or, at a minimum, incre…

Read More