Millennial Media Inc. surged the most in three years after TechCrunch reported that AOL Inc. is in talks with the mobile-advertising company about a possible acquisition.
Millennial jumped 28 percent to $1.86 at the close in New York, the biggest one-day gain since March 2012. The shares have advanced 16 percent this year.
AOL, which was purchased by Verizon Communications Inc. for $4.4 billion last month, might pay between $300 million and $350 million for Baltimore-based Millennial, TechCrunch said. AOL had considered the deal before it was acquired by Verizon, according to the report, which cited unidentified people with knowledge of the matter.
Expanding its reach in mobile advertising would help boost Verizon’s revenue as more people watch videos and other content on mobile devices. More than 60 percent of digital media consumption in the U.S. happens on mobile devices, according to ComScore’s 2014 survey.
A call and an e-mail sent to Millennial spokeswoman Christina Feeney weren’t immediately returned. AOL spokesman Eoin Ryan declined to comment.
(An earlier version of this story misspelled Verizon Communications Inc.)