Twitter announced that it would sell MoPub to Nasdaq-listed AppLovin, a marketing software company, for $1.05 billion or R15.7 billion in cash.
Jack Dorsey, Twitter CEO 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.”
The transaction will enable Twitter 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.
Twitter believes AppLovin is well-positioned to grow and evolve MoPub’s network of customers in the rapidly changing in-app industry.
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.”
Today we signed an agreement to sell @mopub to @AppLovin. We plan to increase focus on O&O product development & replenish near term revenue loss, with the goal of improving time to market to deliver on our previously stated goal of $7.5B or more in 2023.https://t.co/C6d0EURVNI
— Ned Segal (@nedsegal) October 6, 2021
]
In 2020, MoPub generated approximately $188 million in annual revenue, which was reported in Data Licensing and Other. The Company will provide additional details regarding the estimated future financial impact when it reports financial results for the third quarter on October 26, 2021, after market close.
As a reminder, the Company will record a charge to operations during the third quarter of 2021 for the $809.5 million litigation settlement it announced on September 20, 2021.
