AOL announced that it has acquired mobile ad network Third Screen Media, which will operate as a wholly-owned subsidiary of AOL's Advertising.com division.

"AOL is one of only four at-scale advertising businesses on the internet, and the acquisition of Third Screen Media gives us a very strong position in the fast-growing mobile space," said Randy Falco, Chairman and CEO of AOL. "It also lets us offer advertisers a more complete set of solutions, from display advertising to search and now a superior set of mobile solutions."

Terms of the deal were not disclosed.

Omar Tawakol, chief advertising officer of Medio Systems, called the deal good news for the entire industry because "all portals [and] online networks want a mobile play and are banking money on it."

News of the deal comes amid fierce competition in the growing mobile space.

In April, Yahoo! bought a 20 percent stake in Right Media.