Acquisition of Nexage is Positive Step for Millennial Media (MM) - Needham & Co.

Needham and Company is issuing commentary on Millennial Media's (NYSE: MM) move to acquire Nexage.

Analyst Kerry Rice commented, We believe Nexage acquisition is positive for Millennial Media as it extends its programmatic platform to include Supply Side Platform (SSP) tools, as well as provides additional data insights and demand. Nexage's SSP delivers incremental revenue by providing publishers with the tools to monetize their mobile advertising inventory. Access to new mobile advertising inventory should, in-turn, increase demand and lift fill-rates and CPMs. We believe the increased scale should increase the network effect and increase leverage in the operating model. While we are encouraged by the potential benefits of the Nexage acquisition, we remain cautious on the execution. Millennial also reiterated its 3Q14 guidance, which should alleviate concerns about the quarterly results.

Needham and Company has Millennial Media at Hold with no price target.

For an analyst ratings summary and ratings history on Millennial Media click here. For more ratings news on Millennial Media click here.

Millennial Media closed at $1.77 yesterday.

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