(Updates with closing share price in second paragraph.)
June 5 (Bloomberg) -- Twitter Inc. agreed to buy Namo Media Inc. as the microblogging website seeks to bolster its reach in mobile advertising.
Twitter announced the acquisition in a blog post, without releasing financial terms of the deal. The company’s shares rose 3 percent to $33.89 at the close in New York.
As Twitter competes with Facebook Inc. and Google Inc. in the market for mobile ad dollars, the purchase of San Francisco- based Namo Media brings technology for native advertising, a strategy that blends ads with the rest of a website. Using its ad network, acquired in last year’s purchase of MoPub, Twitter has said it can reach more than 1 billion phones.
“We have been working to bring native ads to mobile app publishers in order to create a more seamless and less intrusive ad experience for users,” Twitter, also based in San Francisco, said today.
Native advertising has become valuable as Internet users get more accustomed to ignoring the typical display and pop-up ads that appear on the edges of Web pages. A native ad in a news application could look like a promoted story, or a marketing message in a game could blend into the way it is played.