Millennial Media Inc. Chief Executive Officer Paul Palmieri said the company will remain independent for the “foreseeable future,” tamping down speculation that it could be a takeover target.
The mobile advertising company has lost 42 percent of its value since a public listing last year, making its assets attractive to a technology buyer interested in gaining a bigger foothold in the fast-growing market. IDC’s Karsten Weide said in April that Yahoo! Inc. could be interested, while IPOPlaybook.com’s Tom Taulli has said the company would fit well with Microsoft Corp.
“We’re operating on all cylinders as an independent player in this marketplace,” Palmieri said in an interview yesterday. “It doesn’t surprise me that that would be attractive to someone, but we are pursuing our independent path now and for the foreseeable future.”
After forecasting 2013 sales that missed analyst estimates in February, Millennial’s market value has slipped to about $600 million. The company fell as low as $6.90 in extended trading yesterday after restating those estimates in its first-quarter results report. Today, the shares fell 1.2 percent to $7.41 at the close in New York.
Millennial Media reported a first-quarter loss, excluding items, of 1 cent a share, the Baltimore, Maryland-based company said in a statement. That compared with a 2-cent average loss estimated by analysts, according to data compiled by Bloomberg. Revenue was $49.4 million, beating the $49.2 million estimate.
“They are going up against some big players,” Taulli said in April. “I don’t think there’s a lack of buyers.”