Setting Up For Yahoo Shopping Spree

Millennial Media, an eight-year-old mobile advertising company, is getting a strong bid today thanks to Yahoo bulls. The stock has climbed nearly 10% since the start of trading.


Jan. 28 at 12:24 PM

$MM Would be an amazing acquisition for $yhoo


$MM pulled in about $72 million in gross profits in 2012, according to its latest public 10K. It is expected to post small losses per share for the fourth quarter of 2013 on $90.51 million in revenues, according to Wall Street consensus estimates. The company is scheduled to host its Q4 earnings call on February 19th, after the bell.

But earnings potential may not be the main driver of activity in this stock, according to Stocktwits users. They see acquisition potential by Yahoo now that Michael Barrett, former Chief Revenue Officer at Yahoo!, is taking the helm. The company announced Barrett would replace CEO and founder Paul Palmieri yesterday.

“With Michael’s diverse expertise in scaling advertising businesses in both the brand and programmatic spaces, he will be instrumental in taking the company to the next level,” said Wenda Millard, President of Medialink and a member of $MM’s Board, in a statement.

Investors hope that next level is at Yahoo. The thinking is that Yahoo will be flush with cash when Chinese e-commerce giant Alibaba IPOs. Yahoo’s 24% stake in the company could be worth as much as $36 Billion, if RBC Capital Markets’s analyst Mark Mahaney is right. That’s a lot of money Yahoo can use to acquire new innovative companies. And Yahoo CEO Marissa Mayer was touting the importance of Yahoo’s mobile initiatives at the Consumer Electronics Show earlier this month.


Jan. 28 at 12:15 PM

$MM New CEO is former Chief Revenue Officer at Yahoo. I smell a possible buyout by $YHOO. An 12-14 offer should be nice! $KNDI $ONVO $ARIA



~ Catherine Holahan (@cholahan)

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