RIM Closing In On Mobile Ad Network Buy: Report

Mobile advertising is hot and BlackBerry maker Research In Motion wants to make sure it isn't sitting on the sidelines. According to a report, RIM has been shopping around for a mobile advertising network and is close to a deal with Millennial, although RIM and Millennial have reportedly reached an impasse over the acquisition price.

According to The Wall Street Journal, which in a late Wednesday story quoted people said to be familiar with the matter, Millennial has asked for a buying price in the neighborhood of $500 million -- too rich for RIM's blood, according to the sources.

Millennial is said to be bullish on its acquisition price, thanks to Google's $750 million acquisition of rival AdMob in November 2009 and Apple's acquisition of Quattro Wireless in January 2010 for an undisclosed sum. According to the Journal, however, RIM executives thought both Google and Apple overpaid for those acquisitions.

Mobile advertising is becoming a heated -- and lucrative -- battleground as more companies invest in smartphones, tablets and other mobile platforms. RIM, whose BlackBerry devices have for years have dominated smartphone market share in North America, is starting to see its lead erode, thanks to the uptake in Apple's ultra-popular iPhone and an all-out invasion of devices running Google's Android OS.

RIM has placed some of its rebound hopes on the BlackBerry Torch 9800, which went on sale Aug. 12 but has been reported to be slow out of the gate. Earlier this week, RIM told CRN and other outlets that a lower price for the Torch through Amazon.com -- which is selling it for $99.99 -- is a promotion through Amazon and not a price cut for the Torch.