Thursday, May 25, 2006

MIcrosoft MSN to Buy Third Screen Media

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2. Microsoft in talks to acquire Third Screen Media

We predicted that advertising via mobile phones would heat up this year, and now it looks like mobile marketing firm Third Screen Media might make some pretty hefty cash as players like Microsoft want to get into the mobile advertising game. Rumors are suggesting that Microsoft's MSN unit is in negotiations with Third Screen Media, which already offers a full-service advertising solution to content publishers seeking to port their content into the wireless market. Third Screen is in a position where it could wait for other suitors and cash out with the highest bidder as larger players like MSN have to build their capabilities from the ground up. Operators are looking to bring outside advertising onto their decks as a way to subsidize the content on their portals. Carriers like Verizon are in the midst of testing different advertising models while content publishers are pushing operators to allow them to sell ads in their content.

To read more about Microsoft's talks with Third Screen Media:
- check out this report from The Wall Street Journal (sub. req.)

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