Twitter to sell MoPub to software maker AppLovin for USD 1 billion

Twitter Inc. recently revealed its plans of selling the in-app monetization business MoPub to AppLovin Corporation, for USD 1.05 billion in cash as the social networking service shifts its attention to advertisements on its app and website.

AppLovin, which went public in April, is essentially a mobile gaming platform with over 200 free-to-play mobile games in its portfolio, including Bingo Story, Slap King, and Word Connect. The social microblogging platform had bought MoPub back in 2013 for around USD 350 million.

Similar to Google's DoubleClick, MoPub allows organizations to track ad inventory in real-time. The platform has helped Twitter generate around USD 188 million in revenue last year.

Twitter CEO Jack Dorsey said this transaction will displays confidence in their revenue product roadmap, accelerating its capacity to invest in the core products that aid in the company’s long-term growth as well as best serving the public conversation.

Amidst Twitter's recent bustle of new product development, CFO Ned Segal described the transaction as a method for the firm to refocus around what he characterizes as massive advertising potential. Twitter will now concentrate on its core business by speeding up the development of new products and services to meet its target of doubling revenue to USD 7.5 billion by 2023.

This year, Twitter made several significant changes to its operations. With features like Ticketed Spaces and Super Follows, the platform is looking for new revenue sources that tap into the booming expansion of the creator economy.

Twitter had also debuted Clubhouse-style audio rooms, new interest-based communities, and various experimental features aimed at making the platform a less toxic and more pleasant place for users. The company also intends to roll out its paid monthly subscription service Twitter Blue to the general public soon.

Source Credits –

https://techcrunch.com/2021/10/06/twitter-mopub-applovin-deal/