Twitter today announced that it has completed the sale of its mobile advertising platform, MoPub, to mobile game maker and marketing software provider AppLovin for $ 1.05 billion in cash. The deal was first announced in October 2021, following Twitter’s revelation of plans to double revenue by 2023 to $ 7.5 billion or more. While MoPub helped Twitter generate roughly $ 188 million in annual revenue in 2020, Twitter now sees more potential in developing other areas of its business as part of its accelerated product development. Specifically, the company said it is now redirecting its resources to performance-based advertising, SMEs, and commerce.
Today, Twitter reiterated its plans to continue the development of its own owned and operated products.
“With the sale of MoPub completed, we continue to focus our efforts on improving the ads on our platform. Our goal is to accelerate growth in key areas and accelerate the development of our products, ”said Bruce Falck, general manager of revenue products at Twitter, in a press release.
Previously, Twitter CFO Ned Segal noted how the sale of MoPub allowed Twitter to focus on the “huge potential for ads” on its website and mobile apps.
But the deal also represents an opportunity for Twitter to invest in new areas of business that could allow it to expand its revenue model beyond advertising alone. Over the past year, the company has significantly increased the pace of its product development with launches such as its audio chat rooms called Twitter Spaces, newsletters (through its Revue acquisition), online communities, a project Birdwatch disinformation demystification, a paid subscription service Twitter Blue, creator economy tools and features like Super Follow and Tips, Crypto, Ecommerce including Live Shopping, and more. Combined, these products give Twitter more opportunities to seek revenue in new ways, like commissions on paid events or subscriptions, for example.
The sale of MoPub also came at a time when the mobile advertising industry was shaken by the changes Apple implemented in its latest version of the iOS mobile operating system. With Apple’s new privacy-focused tools, more consumers can now opt out of being followed by apps and advertisers, making a company like MoPub much less appealing to Twitter. AppLovin, however, sees the opportunity to leverage MoPub’s demand-side and supply-side tools into its largest in-app mediation platform, MAX, and then migrate publishers and demand partners to the platform. unified form, thus developing its activity. The company says it expects to process more than $ 15 billion in annualized ad spend by 2023.
At the time of the transaction, MoPub’s software was used by 45,000 mobile apps to manage their monetization and reached 1.5 billion addressable users globally, AppLovin said. Today, more than 150 DSPs, representing thousands of brands and agencies, now have direct access to AppLovin Exchange, the company adds.
“Developers get more features to drive higher monetization opportunities and streamline workflows, resulting in increased revenue for their businesses. We believe the power of this unified platform will be unprecedented in today’s market, ”said Adam Foroughi, co-founder and CEO of AppLovin, in a statement. “We are excited to complete this strategic acquisition with the goal of leveraging the largest and most robust integrated advertising platform that enhances the growth of the broader mobile application ecosystem. “
The acquisition was to be finalized in early 2022.
Twitter reported today that the MoPub platform, including Network Mediation, Advanced Bidding and Marketplace, will end on March 31, 2022. The MoPub dashboard and reports will be available until April 8, 2022. The MoPub dashboard and reports will be available until April 8, 2022. Publishers will benefit from a 90-day transition period from almost migrating from the MoPub platform to the AppLovin MAX platform.