announced Twitter Inc is selling its mobile ad network, MoPub, to AppLovin, a game developer and ad technology company, for $1.05 billion in cash, as the microblogging platform looks to focus more on ads across its app and website.
The company said it is selling MoPub to accelerate the development and growth of owned and managed revenue products. She explained that the sale is in line with its goal of reaching $7.5 billion in revenue by the end of 2023.
“This transaction increases our focus and demonstrates confidence in our revenue product roadmap, accelerating our ability to invest in the core products that drive long-term growth and best serve the public conversation,” Twitter CEO Jack Dorsey said in a statement.
The company said MoPub generated $188 million in revenue for it in 2020. This represents roughly 5.9 percent of the company’s 2020 ad revenue and just over 5 percent of its total sales for the year.
Similar to Google DoubleClick, MoPub allows companies to track their ad inventory in real time. The company said it would provide additional details on the estimated financial impact of the deal when it reports its third-quarter earnings on October 26.
The MoPub sale comes after Apple in April released iOS 14.5, a version of the mobile operating system that makes it difficult for advertisers to track user activity across iPhones and iPads.
The MoPub network is used by 45,000 mobile apps and reaches 1.5 billion routable users. That’s according to AppLovin’s press release. The deal is expected to expire next year.
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The sale is in line with Twitter’s goal
“We are excited about the opportunity to grow the AppLovin platform and further improve the monetization tools for publishers through this strategic transaction,” said Adam Foroughi, CEO of AppLovin, in a statement. We welcome the MoPub team and work hard together to integrate the best of MoPub into the AppLovin software platform.
AppLovin’s business is divided between the games that make a lot of their money selling virtual items, and the marketing tools that other game developers use to promote apps.
Founded in 2011, AppLovin was initially focused on helping mobile apps discover them and generate revenue.
In 2018, the company raised $2 billion from KKR to expand its game development business through acquisitions. AppLovin has a market capitalization of approximately $29 billion.
Twitter bought MoPub for $350 million in stock in September 2013. That was before the company debuted on the public market. The purpose of the purchase was to enhance its ability to monetize mobile advertising.
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