Twitter sells MoPub mobile ad network to AppLovin for $1.05 billion
Jack Dorsey, CEO of Twitter and co-founder & CEO of Square, speaks during the crypto-currency conference Bitcoin 2021 Convention at the Mana Convention Center in Miami, Florida, on June 4, 2021.
Marco Bello | AFP | Getty Images
Twitter claimed that MoPub was sold to speed up the growth and development of revenue products it owns and operates. Twitter claimed that MoPub was being sold in accordance with its stated policies. goal of reaching $7.5 billion in revenueBy the end 2023
AppLovin shares rose more than 9 percent in trading after hours on Wednesday. Nearly 2% of Twitter shares rose.
Twitter CEO Jack Dorsey released a statement saying that “this transaction increases our focus, and demonstrates confidence with our revenue product roadmap. This accelerates our ability to spend in the core products which position Twitter for long term growth and best serve public conversation,” Jack Dorsey added.
According to Twitter, MoPub was responsible for $188million in Twitter revenue in 2020. This represents almost 5.9% of 2020 company advertising revenue, and just over 5% of total 2020 revenue.
Twitter indicated that they would give additional information on the expected financial impact when reporting third quarter earnings on October 26th.
AppLovin announced that the MoPub network was used by approximately 45,000 mobile applications and has 1.5 billion addressesable users. It is anticipated that the deal will close by 2022. AppLovin said
AppLovin CEO Adam Foroughi stated, “We are thrilled by the chance to grow AppLovin and further enhance publisher monetization through this strategic transaction.” in a statement. We are pleased to welcome MoPub’s team. Together, we will strive diligently for the integration of the best MoPub and the AppLovin platform.
AppLovin splits its business between apps, which makes a large portion of its revenue from virtual products, as well as marketing tools used by other developers for app promotion and discovery.
AppLovin, which was founded in 2011, initially focused its efforts on helping mobile applications get found and made money. The company received $2 billion in funding from KKR in 2018 to help expand its game development business, mainly through acquisitions.
MoPub was acquired by Twitter about $350 millionIn stock just minutes before company’s public debut in September 2013. It was meant to boost Twitter’s ability generate mobile ads revenue.
The story continues to develop.