Twitter announced on Wednesday that it has sold its MoPub mobile advertising network to game developer and advertising technology company AppLovin for $ 1.05 billion in cash.
Twitter said it sells MoPub to accelerate the development and growth of profitable products it owns and operates. The sale is in line with Twitter’s goal of achieving $ 7.5 billion in revenue by the end of 2023, the company said.
In the extended deal on Wednesday, AppLovin’s share price rose more than 8%. Twitter’s share has risen by more than 2%.
“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 CEO Jack Dorsey said in a statement.
MoPub made $ 188 million on Twitter in 2020, the company said Wednesday. That’s almost 5.9% of business advertising revenue in 2020 or just over 5% of total annual revenue.
Twitter said it would provide detailed information on the estimated financial impact of the transaction when reporting revenue in the third quarter of October 26th.
MoPub came after Apple releases iOS 14.5 in April. This is a version of the mobile operating system that makes it difficult for advertisers to track user activity on their iPhones and iPads. In the extended deal on Wednesday, AppLovin’s share price rose more than 8%. Twitter’s share has risen by more than 2%
According to an AppLovin press release on Wednesday, the MoPub network is used by 45,000 mobile applications and can serve 1.5 billion users.
“We are excited by the opportunity to grow the AppLovin platform and further enhance our publisher monetization tools through this strategic transaction,” said AppLovin CEO Adam Foroughi in a statement. “We welcome the MoPub team and together we will work diligently to combine the best of MoPub into the AppLovin software platform.”
AppLovin’s business is divided into games that make a lot of money from selling virtual items and marketing tools that other game developers use to promote their applications.
Founded in 2011, AppLovin initially focused on helping mobile apps find and generate revenue. In 2018, the company raised $ 2 billion from KKR primarily to expand its game development business through acquisitions. AppLovin’s market capitalization will be close to $ 29 billion by the end of Wednesday.
Twitter bought MoPub in stock for about $ 350 million in September 2013, just before the company made its debut in the open market. This purchase was aimed at boosting Twitter’s ability to generate revenue from mobile advertising.