Twitter Sells MoPub to AppLovin for $1.05 Billion

Twitter Completes Sale of MoPub to AppLovin for $1.05 Billion

Twitter has finalized the divestiture of its mobile advertising platform, MoPub, to AppLovin, a prominent mobile game developer and marketing solutions provider. The transaction, valued at $1.05 billion in cash, was initially revealed in October 2021.

This sale aligns with Twitter’s previously stated ambition to achieve $7.5 billion or greater in annual revenue by 2023, representing a doubling of its income.

Strategic Shift for Twitter

Although MoPub contributed roughly $188 million in yearly revenue for Twitter in 2020, the company is now prioritizing investment in alternative growth areas. A focus on accelerated product innovation is driving this strategic redirection.

Specifically, Twitter intends to concentrate resources on performance-based advertising, support for small and medium-sized businesses (SMBs), and commerce initiatives.

Focus on Platform Enhancement

“The completion of the MoPub sale allows us to further concentrate on improving advertising experiences across our own platform,” stated Bruce Falck, Twitter’s General Manager of Revenue Products, in an official press release.

“Our objective is to facilitate faster growth in key sectors and expedite our product development cycles.”

Expanding Revenue Streams

Previously, Twitter’s CFO, Ned Segal, highlighted that the sale of MoPub would enable the company to focus on the “substantial potential for advertising” within its own website and mobile applications.

Furthermore, the deal provides Twitter with capital to explore new business avenues, potentially diversifying its revenue model beyond traditional advertising.

Impact of Apple’s Privacy Changes

The sale of MoPub also occurred amidst industry disruption caused by Apple’s privacy updates in iOS. These changes empower users to limit app and advertiser tracking.

This shift diminished the attractiveness of a business like MoPub. However, AppLovin intends to integrate MoPub’s demand- and supply-side capabilities into its MAX platform, streamlining operations for publishers and demand partners.

AppLovin anticipates processing over $15 billion in annualized advertiser spending by 2023.

MoPub’s Reach and Capabilities

At the time of the agreement, MoPub’s software was utilized by 45,000 mobile applications for monetization purposes, reaching a global audience of 1.5 billion users, according to AppLovin.

Currently, over 150 Demand-Side Platforms (DSPs), representing numerous brands and agencies, have direct access to the AppLovin Exchange.

AppLovin’s Vision

“Developers will benefit from enhanced features to maximize monetization and simplify workflows, ultimately boosting their revenue,” stated Adam Foroughi, AppLovin’s co-founder and CEO.

“We are confident that this unified platform will be unmatched in the current market. We are enthusiastic about executing this strategic acquisition and establishing the largest, most robust in-app advertising platform to support the growth of the mobile app ecosystem.”

Transition Timeline

The acquisition was initially projected to conclude in early 2022.

Twitter has announced that the MoPub platform, encompassing network mediation, Advanced Bidding, and Marketplace, will be discontinued on March 31, 2022. Access to the MoPub Dashboard and Reporting will remain available until April 8, 2022.

Publishers will be granted a 90-day period following the closure of the deal to migrate from the MoPub platform to AppLovin’s MAX platform.