We are all very happy that Microsoft and Screentonic have agreed to team up via acquisition, a move that further bolsters our Windows Live mobile advertising capability.

In a press release today, Steve Berkowitz, senior vice president of the Online Services Group at Microsoft, commented: "The mobile Internet is an extraordinary vehicle for brands to connect with their target audiences, because devices like cell phones enable interaction to take place virtually anywhere or anytime. The acquisition of ScreenTonic will be part of our long-term strategy to deliver ad experiences that map to the environment. Together, we will be able to provide relevant ads where consumers are, when they are actively engaged and communicating."

Many months ago, the Emerging Business Team raised Screentonic as a high-potential partner/acquisition. Discussions have been ongoing since and with much work from our French EBT Lead Julien Codorniou as well as Corp PMs Sanjiv Parikh and Nicolas Kardas, a deal was agreed.

This acquisition is true to our form – small team, niche player with compelling solution and great IP – and echoes the MotionBridge acquisition of last year (Feb, 2006): another small French company in the mobile advertising space (except Motionbridge were on the carrier/platform side whereas ScreenTonic facilitates richer interaction and context on the handset).

Note that the last round of funding for Screentonic was only April last year, so this reflects a very quick exit for their VCs 3i Group and I-Source! 

I am sure it was attractive for all!