On Wednesday the microblogging site Twitter said that they have finally made a deal to sell their app advertising specialty platform MoPub for around 1.5 billion dollars and that too in cash. This money which is obtained from the sale of MoPub to silicon valley based AppLovin Corporation will be included in the building revenue-generating features at Twitter and this will be used to promote growth at the one-to-many platforms of broadcasting.
Bruce Falck, the Twitter Avenue product lead, said in a release, “The sale of MoPub is all about increased focus, redirecting our resources and delivering faster growth in several key areas,” This mobile Technology company AppLovin helps to provide services for developers in order to improve publish and make money with the help of apps. According to the companies, MoPub generated approximately $188 million in revenue as a part of Twitter last year.
AppLovin, the tech company, helps to make tools for many developers of apps so that they can improve marketing and revenue and also runs its own mobile-game apps. AppLovin went public earlier this year. The tech company’s stock went up more than 9% in after-hours trading, and then the company announced the acquisition. While on the other hand, Twitter’s stock rose about 2%. With the help of MoPub, it will become easier for AppLovin to assemble more demand and competition for publishers’ ad impressions, according to a blog post, made by the CEO of AppLovin, Adam Foroughi.
Jack Dorsey, the chief of the famous microblogging site, Twitter, has now made a priority to roll out some new features and options at a fast clip, aiming that this will help to increase the revenue and also the amount of time the users spend on the platform. Jack Dorsey said in a release, “MoPub’s sale demonstrates confidence in our revenue product roadmap.” And now, according to Ned Segal, the chief financial officer of Twitter, Twitter has set a goal to at least double the total annual revenue from $3.7 billion last year to $7.5 billion this year. Last month, the famous microblogging platform began allowing high-profile users to get some tips in bitcoin, as now the network aims to step up its wooing of the content creators which is essential to drawing more users online.
Twitter informed it will open up about some additional details on the estimated financial impact of the deal at the time when it will report about its third-quarter earnings on October 26. The sale of MoPub was started after Apple launched iOS 14.5 in April. This new version of Apple is a version of its mobile operating system, and it makes it more difficult for advertisers to keep a track of the user activity on their iPhones and iPads, to advertise the ads related to users’ interests.
45,000 mobile apps use the wide advertising network of MoPub and it reaches 1.5 billion addressable users, according to AppLovin’s press release on Wednesday. Talking about the deal, it is decided that this deal is expected to close next year.
Adam Foroughi said in a statement, “We are excited by the opportunity to grow the AppLovin platform and further enhance our publisher monetization tools through this strategic transaction. We welcome the MoPub team and together we will work diligently to combine the best of MoPub into the AppLovin software platform.”
In September 2013, Twitter purchased MoPub for about $350 million in stock, which was just before the company was set to make its public market debut. This purchase was intended to bolster Twitter’s ability to generate revenue with the help of mobile ads.