Microblogging giant Twitter announced on Wednesday that it was selling its 2013 acquisition MoPub to software company AppLovin for $1.05 billion. MoPub was acquired by Twitter back in 2013 for $350 million and is a mobile ad platform.
The announcement from Twitter to sell MoPub was announced via its eponymous platform. The tweet read “Today we are announcing that @MoPub is being acquired by @AppLovin. It’s a big moment in the mobile app ecosystem, and we believe that AppLovin is well-positioned to grow & evolve MoPub’s network of customers in the rapidly changing in-app industry”.
Founded in 2010, MoPub provides monetization solutions for mobile app publishers around the world. AppLovin, on the other hand, is a mobile game and marketing software company founded in 2012 but went fully operational in 2014. Through its mobile advertising, marketing, and analytics platforms MAX, AppDiscovery, and SparkLabs, AppLovin enables developers of all sizes to market, monetize, analyze and publish their apps.
The MoPub-AppLovin deal will be completed in Cash. MoPub has been instrumental to Twitter’s growth. Last year alone, it brought in about $188 million in revenue. According to Twitter’s CEO Jack Dorsey, “this transaction increases our focus and demonstrates confidence in our revenue product roadmap, accelerating our ability to invest in the core products that position Twitter for long-term growth and best serve the public conversation”.
Twitter’s CFO Ned Segal also made the announcement about the deal via tweet. His tweet read “Today we signed an agreement to sell @mopub to @AppLovin. We plan to increase focus on O&O product development & replenish near term revenue loss, with the goal of improving time to market to deliver on our previously stated goal of $7.5B or more in 2023”.
His tweet describes the MoPub-AppLovin deal as a way for Twitter to redirect its focus on what he termed a massive advertising opportunity that lies in products (both new and old) developed by the company. Twitter has, however, been investing in acquisitions that will help achieve its vision and goals of creating new revenue streams. Twitter acquired ad-free reading tool Scroll and newsletter platform Revue amongst others.
This year, Twitter has also focused on features that will provide a safe space for everyone on its platform. It also launched its Clubhouse-like audio room called Spaces and is planning to launch a paid monthly subscription service it calls Twitter Blue. The company has also shown a great amount of focus on creators using its platform and have launched features to help them thrive. Last month, Twitter announced that users of the platform will be able to give tips to their favourite creators using Bitcoin.