AOL, having recently been acquired by Verizon, is already on a path to expanding its advertising business, with rumours circulating that the company is in the process of buying mobile ad network Millennial Media.

According to sources quoted by TechCrunch, AOL is been “kicking the tires” on Millennial for several weeks, but acquisition talks slowed during Verizons purchase of the company. However, talks are reportedly back on, with offers between $300m and $350m (£271m to £317m) on the table.

Millennial currently has a market capitalisation of around $217m, meaning AOL would be paying out a premium to acquire the firm, but given AOLs relative lack of experience in mobile, it would likely benefit from such an investment in the fastest growing area of digital marketing.

Millennial Media has been public since 2012, and has remained largely independent while other mobile ad startups have been acquired by big players like Google and Yahoo. However, recent disappointing earnings and skepticism around the companys long-term prospects has seen the firm lose much of its valuation since its IPO boost.

Neither AOL or Millennial Media have commented on the acquisition talks, and any announcement is likely several weeks away, even if the rumours are accurate.