Twitter sells its mobile advertising network MoPub to mobile ad startup AppLovin for $1.05 billion
Twitter on Wednesday announced it has agreed to sell its MoPub mobile advertising network to mobile ad startup AppLovin for $1.05 billion in cash. Twitter purchased MoPub in September 2013 for a reported $350 million.
In a statement, Twitter said it made the decision to sell MoPub to accelerate the development of owned and operated revenue products and drive growth across key areas for the service including performance-based advertising, small and medium-sized business (SMB) offerings, and commerce initiatives.
MoPub is a mobile monetization platform that helps publishers drive more revenue from advertising and mobile transactions. AppLovin on the other hand was founded in 2010 by Bryan Atwood and Jim Payne before Twitter acquired it on September 9, 2013. The sale of MoPub comes after Apple in April launched iOS 14.5, a version of its mobile operating system that makes it more difficult for advertisers to track user activity on their iPhones and iPads.
Twitter said the sale of MoPub is in line with its stated goal of reaching $7.5 billion in revenue by the end of 2023. Twitter believes AppLovin is well-positioned to grow and evolve MoPub’s network of customers in the rapidly changing in-app industry.
Twitter CEO Jack Dorsey says: “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. We thank the incredible teams and customers who have contributed to making MoPub a success within Twitter over the years.”
In a blog post, AppLovin CEO Adam Foroughi said, “We are excited to announce that AppLovin has agreed to acquire MoPub from Twitter for approximately $1 billion in cash—a highly strategic investment for our company in a fast-growing market. For the past decade at AppLovin, we’ve been building tools to help mobile app developers grow their businesses, including MAX and AppDiscovery. Combining the best of MoPub with our AppLovin software platform is beneficial for both our customers and partners, ultimately enhancing the growth of the broader mobile app ecosystem.”
The MoPub network is used by 45,000 mobile apps and reaches 1.5 billion addressable users, according to AppLovin’s announcement of the deal. The deal is expected to close in 2022, AppLovin said.
“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.
In 2020, MoPub accounted for $188 million in revenue for Twitter, the company said on Wednesday. That represents about 5.9% of the company’s 2020 advertising revenue and a little more than 5% of its total revenue in 2020.
Ned Segal, Twitter CFO says: “The sale of MoPub positions us to concentrate more of our efforts on the massive potential for ads on our website and in our apps. We plan to accelerate product development and replenish the near-term revenue loss, with the goal of improving our time to market to deliver on our previously stated goal of at least doubling total annual revenue from $3.7 billion in 2020 to $7.5 billion or more in 2023.”
Used by over 9,000 developers in over 130 countries, AppLovin’s technology leverages machine learning and predictive algorithms to better match users to your app. The company connects users’ apps o a massive, global scale while crafting a personalized experience for them.
“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.”