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Verizon and AOL Pick Up Millennial Media

$238 million, give or take.

Asa Mathat
Peter Kafka covers media and technology, and their intersection, at Vox. Many of his stories can be found in his Kafka on Media newsletter, and he also hosts the Recode Media podcast.

Verizon’s AOL unit has finished its purchase of Millennial Media, a mobile ad network that has struggled to make it in an industry dominated by Facebook.

AOL says it is paying $1.75 per share for Millennial, which traded as high as $27.90 when it went public in 2012 and closed at $1.34 last night. After accounting for Millennial’s cash and debt, AOL says it will end up spending $238 million on the company; investors once thought Millennial was worth $1.87 billion.

Prior to its acquisition by Verizon earlier this year, AOL had spent a lot of time and energy building up its video products and ad sales and focusing on a push toward automated ad sales. It says Millennial, which delivers ads to 65,000 apps, will shore up its mobile offering.

Verizon and AOL are set to roll out “Go90,” a mobile-focused video service, in the next few days.

This article originally appeared on Recode.net.

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