Microblogging platform Twitter has agreed to sell MoPub to marketing software company AppLovin Corporation, for $1.05 billion in cash.
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, the company said in its statement.
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.”
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.”
Bruce Falck, Twitter Revenue Product Lead adds: “The sale of MoPub is all about increased focus, redirecting our resources and delivering faster growth in a number of key areas including performance-based ads, SMB and commerce. We’re confident AppLovin will be a great home for MoPub as they will further invest in the business, driving strong monetization for publishers and their customers.”
Under the terms of the agreement, Twitter will provide certain services to AppLovin for a period of time post-close to enable an orderly transition for publishers and advertisers. The transaction, which was unanimously approved by the Twitter Board of Directors, is expected to close in the coming months, subject to customary closing conditions, including receipt of regulatory approval, the statement said.
Featured Image Credit :Wired.com
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