Microsoft’s latest acquisition could be InMobi
So far in this series, we’ve discussed Microsoft’s (MSFT) acquisition of Event Zero. Let’s look at the next probable acquisition Microsoft is angling for. According to Dazeinfo, InMobi is a mobile advertising platform based in India (INDA), and on Microsoft’s acquisition radar. This has garnered attention because InMobi is also on Yahoo’s and Google’s (GOOG) priority lists.
Though financial details of the possible acquisition have not been disclosed, it’s said that InMobi is expecting $2 billion dollars for its buyout, which Microsoft might be willing to pay as it is InMobi’s largest customer, as stated by Seeking Alpha.
Mobile ads are expected to define the future of advertising
Due to the SMAC (social, mobile, analytics, and cloud) revolution, there has been an exponential growth in smartphones, wearable devices, connected products, apps, and digital communications. These resources facilitate trillions of customer interactions on a daily basis. If Microsoft manages to acquire InMobi, it will get a stronger foothold in mobile advertising. InMobi claims that its network touches over 1 billion users per month.
According to an InMobi study, its mobile apps segment is expected to profit the most from mobile native advertising adoption, as 63% respondents see huge potential in it, as the above presentation shows. The news and entertainment and retail segments follow the mobile apps segment closely, with 54% and 51% respondents, respectively, believing that those segments will get the maximum benefit from native advertising.
Investors who wish to gain exposure to Microsoft could consider investing in the SPDR S&P 500 ETF (SPY). While SPY invests ~2.4% of its holdings in Microsoft, it also has an exposure of ~8% to application software.