SAN FRANCISCO – Twitter, Inc. has agreed to sell MoPub to AppLovin Corporation, a leading marketing software company based in Palo Alto, for $ 1.05 billion in cash.
MoPub provides an advertising network for application publishers. Twitter bought the company for around $ 350 million in 2013, but sells it to focus on its own products and services.
Jack Dorsey, CEO of Twitter, said in a statement, âThis transaction strengthens our focus and demonstrates confidence in our revenue product roadmap, accelerating our ability to invest in commodities that position Twitter for growth at long term and best serve the public conversation. We thank the amazing teams and clients who have made MoPub successful in Twitter over the years. “
Ned Segal, Chief Financial Officer of Twitter, said: âThe sale of MoPub allows us to further focus our efforts on the enormous potential of ads on our website and in our apps. We plan to accelerate product development and close short-term revenue loss, with the goal of improving our time-to-market to meet 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. “
In 2020, MoPub generated approximately $ 188 million in annual revenue.
Under the terms of the agreement, Twitter will provide certain services to AppLovin during a post-closing period to allow for an orderly transition for publishers and advertisers. The transaction is expected to be finalized in the coming months and subject to customary closing conditions, including receipt of regulatory approval.