Microsoft Trying To Buy Mobile Ad Vendor - Report

Microsoft is in discussions to buy a company that serves ads for wireless Web sites, the Wall Street Journal reported Thursday.

The Journal said that Microsoft's MSN business unit is negotiating to acquire Third Screen Media, which serves ads for large wireless sites such as those run by USA Today and The Weather Channel. The acquisition is another indication that Microsoft is avid to compete with Google, particularly when it comes to generating revenues from advertising in discreet market niches.

Earlier this month, Microsoft announced its acquisition of Massive, Inc., which inserts ads into video games. The Journal reported that it isn't yet known how much Microsoft is willing to pay for Third Screen Media, which has reported revenues of less than $10 million a year.

Advertisers increasingly are expressing interest in mobile phones because so many people have them. That, in turn, has led to a surge of interest in providing content to which advertising can be attached. Recently, for instance, a startup announced that it wants to provide ad-supported comic strips to cell phones.