Twitter Sells MoPub to AppLovin for $1.05 Billion

Twitter to Divest MoPub to AppLovin

Twitter revealed on Wednesday its intention to sell MoPub, the mobile advertising platform acquired in 2013. The sale will see the company transferred to AppLovin, a developer of mobile games and marketing software.

Originally purchased for approximately $350 million in 2013, MoPub is now being divested for $1.05 billion in cash. The platform generated roughly $188 million in revenue for Twitter during the previous year, as reported by the company.

Strategic Shift for Twitter

“This action allows us to sharpen our concentration and reflects our assurance in our revenue product strategy,” stated Twitter CEO Jack Dorsey in an official press release. “It will accelerate our capacity to invest in the fundamental products that will secure Twitter’s long-term expansion and optimally serve public discourse.”

Twitter’s CFO, Ned Segal, framed the transaction as a means of concentrating the company’s efforts on a substantial advertising opportunity. This comes amid a period of rapid new product development for Twitter.

Focus on Owned Products and Innovation

Segal indicated that Twitter will prioritize the development of its own, directly managed products. However, the company continues to explore acquisitions that align with this overarching vision.

Twitter has undertaken several significant business adjustments this year, marking a departure from its previous operational pace. A series of swift product releases demonstrates the company’s exploration of new revenue streams.

Exploring the Creator Economy

These new streams capitalize on the rapid expansion within the creator economy, featuring initiatives like Super Follows and Ticketed Spaces. Despite their introduction, adoption rates for these features have been limited to date.

Recent Acquisitions Signal New Directions

The company’s acquisition activity this year further highlights its evolving strategic direction. This includes the ad-free reading application Scroll, along with Nuzzel, Scroll’s associated news aggregator, and the newsletter platform Revue.

New Features and Subscription Services

Furthermore, Twitter has introduced audio rooms similar to Clubhouse, communities centered around specific interests, and a range of experimental features. These are all designed to foster a more positive user experience on the platform.

These developments are expected to contribute to the upcoming launch of Twitter Blue, the company’s planned paid monthly subscription service.