SAN FRANCISCO — Twitter, Inc. has agreed to sell MoPub to AppLovin Corporation, a leading marketing software company based in Palo Alto, for $1.05 billion in cash.
MoPub provides an advertising network for app publishers. Twitter bought the company for about $350 million in 2013 but is selling to focus on its own products and services.
Jack Dorsey, Twitter CEO said in a statement: “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. We thank the incredible teams and customers who have contributed to making MoPub a success within Twitter over the years.”
Ned Segal, Twitter CFO said: “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. We plan to accelerate product development and replenish the near term revenue loss, with the goal of improving our time to market 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.”
In 2020, MoPub generated approximately $188 million in annual revenue.
Under the terms of the agreement, Twitter will provide certain services to AppLovin for a period of time post-close to enable an orderly transition for publishers and advertisers. The transaction is expected to close in the coming months, and subject to customary closing conditions, including receipt of regulatory approval.