Twitter is promoting the MoPub cell promoting community to AppLovin for $ 1.05 billion
Jack Dorsey, CEO of Twitter and Co-Founder and CEO of Square, speaks during the Bitcoin 2021 Convention cryptocurrency conference at the Mana Convention Center in Miami, Florida on June 4, 2021.
Marco Bello | AFP | Getty Images
Twitter on Wednesday announced the sale of its mobile advertising network MoPub to AppLovin, a game developer and ad tech company, for $ 1.05 billion in cash.
Twitter said it is selling MoPub to accelerate the development and growth of its own and operated revenue products. The sale is in line with Twitter’s target of $ 7.5 billion in revenue by the end of 2023, the company said.
AppLovin shares rose more than 8% in expanded trading on Wednesday. Twitter shares rose more than 2%.
“This transaction strengthens our focus and demonstrates our confidence in our product roadmap for revenue and accelerates our ability to invest in the core products that position Twitter for long-term growth and that best serve the public debate,” said Twitter CEO Jack Dorsey in a statement.
MoPub generated $ 188 million in revenue for Twitter in 2020, the company said on Wednesday. That equates to nearly 5.9% of the company’s advertising revenue in 2020 and just over 5% of total revenue for the year.
Twitter said it will provide additional details on the estimated financial impact of the deal when it announces its third quarter results on Oct.26.
MoPub’s sale comes after Apple launched iOS 14.5 in April, a version of its mobile operating system that makes it difficult for advertisers to track user activity on their iPhones and iPads.
The MoPub network is used by 45,000 mobile apps and, according to AppLovin’s press release on Wednesday, reaches 1.5 billion addressable users. The deal is slated to close next year.
“We are excited about the opportunity to further expand the AppLovin platform through this strategic transaction and further enhance our monetization tools for publishers,” said Adam Foroughi, CEO of AppLovin, in a statement. “We welcome the MoPub team and will work together diligently to bring the best of MoPub into the AppLovin software platform.”
AppLovin’s business is split into games, which make a lot of their money selling virtual items, and marketing tools, which other game developers use to promote apps.
AppLovin was founded in 2011 and initially focused on discovering mobile apps and generating income. In 2018, the company raised $ 2 billion from KKR to expand its business into game development, mostly through acquisitions. AppLovin has a market cap of nearly $ 29 billion as of Wednesday’s close of trading.
Twitter bought MoPub for about $ 350 million in shares in September 2013, just before the company was due to make its public debut. The purchase should strengthen Twitter’s ability to generate revenue from mobile ads.
SEE: Twitter sells MoPub to AppLovin