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

10 Benefits of Drone-Based Asset Inspections

By: Frank Segarra    1/15/2018

Although a new and emerging technology, (which is still evolving), in early 2018, most companies are not aware of the possible benefits they can achie…

Read More

VR Could Change Entertainment Forever

By: Special Guest    1/11/2018

VR could change everything from how we play video games to how we interact with our friends and family. VR has the power to change how we consume all …

Read More

Making Connections - The Value of Data Correlation

By: Special Guest    1/5/2018

The app economy is upon us, and businesses of all stripes are moving to address it. In this age of digital transformation, businesses rely on applicat…

Read More

3 Ways to Improve Your VR Projects

By: Ellie Martin    1/4/2018

There is no denying that VR is here and will most likely only increase in velocity as a terminal speed is yet to be even hypothesized. That is why it …

Read More

Alphabet to See Schmidt Step Down

By: Maurice Nagle    12/21/2017

In 2001, Google brought Eric Schmidt on board as CEO. To 10 years later become executive chairman, and continue to serve in this capacity through rest…

Read More