Twitter sells MoPub to AppLovin for $ 1.05 billion – TechCrunch

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Twitter said on Wednesday it would be divesting MoPub, the mobile advertising platform it bought in 2013, by selling the company to mobile marketing and gaming software maker AppLovin.

Twitter paid around $ 350 million for MoPub in 2013 and will sell the company for $ 1.05 billion in cash. MoPub helped Twitter generate around $ 188 million in revenue last year, according to the company. Twitter previously set a goal of doubling its annual revenue by 2023.

“This transaction strengthens our focus and demonstrates confidence in our revenue product roadmap, accelerating our ability to invest in commodities that position Twitter for long-term growth and best serve the public conversation,” said Jack Dorsey, CEO of Twitter, in a press release.

Today we signed an agreement to sell @mopub To @AppLovin. We plan to focus more on O&O product development and replenish short-term revenue loss, with the goal of improving time-to-market to our previously stated target of $ 7.5 billion or more in 2023.https: //t.co/C6d0EURVNI

– Ned Segal (@nedsegal) October 6, 2021

Twitter chief financial officer Ned Segal called the deal a way for the company to refocus on what he describes as a “massive” advertising opportunity amid the recent wave of new product development on Twitter. Segal said Twitter would instead focus on developing its own owned and operated products, although it appears to be investing heavily in acquisitions that fit that vision in recent months.

For a company that was primarily on cruise control before, Twitter has taken a number of important steps to shake up its business this year. In a series of rapid product launches, Twitter is exploring new revenue streams that tap into explosive growth in the creator economy with features like Super Follows and Ticketed Spaces, though these products have limited adoption at the moment.

The company has made a number of acquisitions this year that indicate its many new directions, including the ad-free reader tool Scroll (a deal that includes Scroll’s excellent but now defunct news aggregator, Nuzzel) and the popular Revue newsletter platform.

Twitter has also launched Clubhouse-style audio rooms, new interest-based communities, and a number of experimental features designed to make the platform a less toxic and more enjoyable place to hang out, which will likely come into play. as the company prepares for a large launch of its monthly paid subscription service Twitter Blue.

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