More push back from RIM as the mobile wars continue to heat up. Reports of the BlackBerry maker having entered discussions with Millennial Media for an acquisition of the mobile ad network have highlighted RIM’s continued struggle to keep up with industry trends, though RIM seems hesitant to pay for what it needs. Talks between the two mobile companies have been stalled, as RIM believes Millennial Media’s $400-$500 million sticker price is too high.
The price tag is based on other industry milestones, such as the acquisition of Quattro by Apple and AdMob by Google, earlier this year. This leaves Millennial as a highly targeted ad network as far as acquisitions go, though the company CEO Paul Palmieri would prefer to keep the company independent, reports The Wall Street Journal. Regarding today’s specific reports about RIM, however, Millennial Media is not releasing any comments.
That may be the ideal path for Millennial Media, especially as the junctions amongst the mobile industry have yet to determine where their loyalties lie. The growing interests in anything mobile related has lured a lot of hands into the cookie jar, and there’s no telling how the cookies will have to crumble in order for any one corporation to come out on top. Current trends, including those outlined by Millennial Media, indicate that a diverse path across devices and platforms is necessary to navigate the unyielding wilderness of mobile marketing and monetization. John Furrier thinks that RIM should swallow its pride and shell out the cash for Millennial, noting the company’s mistaken thought process,
“RIM needs an ad solution, but it sounds like…they don’t want to pay anywhere near what Apple and Google paid for Quattro and Admob. Dumb move by RIM. Smart move by Millennial Media to reject low ball offers from RIM (if that is what is happening as reported by the Wall Street Journal).
“Millennial is in a great spot as the #1 independent mobile ad player. The marketplace of players around the world needing an independent mobile ad solution is almost 1/2 dozen providers and Millennial is rumored to be going public according to recent media reports. Millennial has an alternative to a negotiated deal with RIM – #1 market share as independent and in the top 3 of the world in their category and a market opportunity of customers. RIM should just pay up. Millennial can go it alone.”
As RIM dances around the issue of expanding its mobile monetization streams, Apple buckles down with iAds, announcing plans to shut down Quattro all together.