Twitter
"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," Ned Segal, Twitter CFO said in a press release. "We plan 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."
Twitter bought MoPub in 2013 for about $350 million. Last year, the platform brought in $188 million in revenue, according to Twitter, and is used by 45,000 mobile apps, reaching 1.5 billion users.
"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," Twitter CEO Jack Dorsey is quoted in a press release. "We thank the incredible teams and customers who have contributed to making MoPub a success within Twitter over the years."
"Increased focus" was mentioned repeatedly as the reason for the sale. In recent months, Twitter has introduced a number of new features to its app, including a premium subscription service and live audio groups, or clubhouses, though these features aren't available to all users.
The premium subscription includes additional tools like bookmark organization, an improved format, and an "Undo Tweet" button.
The additional features, which allow for interest-based communities to grow on the site, were reportedly created in an effort to reduce the level of toxicity present on Twitter's site currently.
Along with the new options for casual users, Twitter also recently introduced a new e-commerce module with tools for businesses and nonprofits. According to the company's release, the sale of MoPub was explicitly made in order to allow Twitter to improve its offerings to small businesses and commerce initiatives, among other things.
The terms of the sale include a transition period during which Twitter will work with AppLovin to support the change in owners. That period is expected to end "in the coming months".
Following the sale, shares of AppLovin saw an 8% bump, while Twitter shares increased by more than 2%.
"We are excited by the opportunity to grow the AppLovin platform and further enhance our publisher monetization tools through this strategic transaction," AppLovin CEO Adam Foroughi said in a statement. "We welcome the MoPub team and together we will work diligently to combine the best of MoPub into the AppLovin software platform."
AppLovin's business falls into two categories: mobile games and marketing tools. The first is used to sell virtual items to users, and the second is used by other app developers to promote their apps.
