BlackBerry Maker in Talks with Ad Network Millennial Media

Google started the ad net trend in late 2009 by acquiring AdMob, and Apple bought out Quattro Wireless in January, replacing it with iAd.  Now BlackBerry is about to follow suit as maker Research In Motion Ltd. is in talks with Millennial Media.

The bump in the road, though, could be Millennial’s value.  Quattro sold for a reported $275 million and AdMob for nearly $750 million.  Millennial is asking for a price RIM may not be willing to pay: $400 to $500 million.  Millennial is a major independent mobile ad network—a dying breed since its biggest competitors Quattro and AdMod were bought out.  Back in February, Millennial acquired TapMetrics, Inc., a mobile application analytics company which produces software that enables users better managements of application sales, adding to its value.  Yet, the problem still stands that Millennial, even after February’s acquisition, is still only making a tenth of their asking price.  It has been queried that, for just a few million, RIM could produce its own ad net.

Creating their own ad net, however, would cost RIM in time which may ultimately cost more in dollars.  RIM leads the market with the number one smartphone in the U.S. and is number two globally, but shares are nonetheless slipping.  Without an ad net in order to capitalize on the growing mobile advertising trend, there may be nothing to catch them.