Millennial Media Inc. Closes Follow-On Offering, Insider Sells Reported


Baltimore-based mobile advertising company Millennial Media Inc. ( MM ) announces today the official end of its follow-on offering, reporting net proceeds of about $12.4 million after deducting underwriting discounts and commissions. Millennial Media first filed a registration statement for the follow-on offering to the SEC on Oct. 15, proposing to sell up to a million shares, with about 9 million shares sold by Millennial stockholders.

At $13.44 per share, a total of 10,578,048 shares were sold by Millennial stockholders. Its underwriters exercised their options to purchase 1.5 million shares of common stock and Millennial itself sold 921,952 of its shares of common stock.

The net proceeds from the follow-on offering will be used for working capital and general corporate purposes, according to a Millennial Media press release.

According to Millennial's GuruFocus Insider Summary , the top sellers among its Insiders include Bessemer Venture Partners' Deer VI & Co. LLC and Columbia Capital, who both sold 2,202,329 of its shares, and who both were 17.6 percent owners prior to the follow-on offering, according to the offering prospectus filed with the SEC.

In second place are Charles River Partnership and Director George Zachary, who both sold 1,690,498 shares, and who were both 13.5 percent owners of Millennial Media prior to the follow-on offering.

Other stockholder sells include 1,597,787 shares sold by New Enterprise Associates Inc., who was 12.8 percent owner prior to the offering, 1,100,862 shares sold by Millennial president and chief executive officer, Paul Palmieri, who was 8.7 percent owner prior to the offering, and 895,672 shares sold by executive vice president and chief technology officer, Chris Brandenburg, who was 7 percent owner prior to the offering.

Millennial Media first registered its initial public offering to the SEC on Jan. 5.

In March, it priced its IPO at $13 per share, offering 10.2 million shares of its common stock to the public and officially trading under the symbol "MM" on March 29.

Millennial closed the IPO five days later, with the company having sold 9.2 million of the 10.2 million shares, and stockholders having sold about 1 million shares. Its underwriters also fully exercised their options, purchasing more than 673,000 shares from Millennial and more than 856,000 shares from the selling stockholders

The size of the IPO ended up totaling 11,370,000 shares.

Investment Guru Ron Baron is the first investor on GuruFocus who recorded buying shares of Millennial Media since it first declared itself a public company. By the end of the second quarter, Baron reported to owning 71,647 shares at $15.68 per share.

Millennial Media Inc. is currently trading at $16.42, with a market cap of $1.25 billion.

The company released a preliminary third quarter financial report earlier this month, highlighting an anticipated revenue growth of 85 percent compared to the second quarter.

"We are delivering greater value to our advertising customers and developer partners through the use of technology and data which, in turn, is driving increased demand for our services..." Palmieri said in the preliminary report. "The fact that we were able to accelerate revenue growth while generating positive adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) during the quarter demonstrates the leverage in our business model."

Millennial Media will officially announce its third quarter results on Nov. 5.

About GuruFocus Insider Data

In 2010, GuruFocus held a three-part Insider Research series examining the relevance of Insider trading activity within companies. The research revealed many interesting facts about incorporating the gathered information to personal investment strategies, as it contributed to the development in the Insider tracking and alert tools offered on GuruFocus. You can view the three-part research series by visiting the following links:

Guru Insider Research ( I ): The Summary of Previous Research Results

Guru Insider Research (II): Can Aggregated Insider Trading Activities Predict the Market?

Guru Insider Research ( III ): Can Aggregated Insider Trading Activities Predict the Market of Different Sectors? About GuruFocus: tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing

Referenced Stocks: I , III , MM



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