Microsoft’s interests in the mobile space have just increased. ClickZ News is reporting that the Redmond giant has snapped up ScreenTonic, with the intention of integrating its capabilities into adCenter. ScreenTonic’s core competency lies in mobile display advertising, and the firm’s offerings include fixed, animated and video banners; text links, ad words, interstitials and video billboards.
Microsoft’s interest in mobile have grown with the recently acquisition of Tellme Networks, as well as MotionBridge.
Microsoft Acquires European Mobile Ad Firm [ClickZ News]

Microsoft is really taking the ad network seriously now especially after Google bought out DoubleClick. There is a rumor now from NYPost that Microsoft and Yahoo are in talks to merge.
http://www.nypost.com/seven/05042007/business/bills_hard_drive_business_peter_lauria_and_zachery_kouwe.htm