Baltimore-based mobile advertising company Millennial Media
) 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
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
The size of the IPO ended up totaling 11,370,000 shares.
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 (
): The Summary of Previous Research Results
Guru Insider Research (II): Can Aggregated
Insider Trading Activities Predict the Market?
Guru Insider Research (
): Can Aggregated Insider Trading Activities Predict the Market
of Different Sectors?
About GuruFocus: GuruFocus.com 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