The deal follows Microsoft's acquisition of France-based ScreenTonic earlier this month (having previously been linked heavily to Third Screen itself).

Third Screen Media connects advertisers, publishers and mobile phone carriers on a common platform, allowing ads to be managed and delivered via WAP, downloadable applications, SMS, MMS and mobile video.

It will now operate as a wholly-owned subsidiary of AOL's Advertising.com division.

AOL no doubt hopes the acquisition will help it secure a slice of a US mobile advertising market is valued at $421 million in 2006, citing eMarketer figures.

Randy Falco, chairman and CEO of AOL, said: "AOL is one of only four at-scale advertising businesses on the Internet, and the acquisition of Third Screen Media gives us a very strong position in the fast-growing mobile space. It also lets us offer advertisers a more complete set of solutions, from display advertising to search and now a superior set of mobile solutions."

Advertisement