Twitter has announced the sale of its mobile ad network, MoPub, to ad technology and game development company AppLovin, for $1.05 billion in cash. Twitter said that the sale came to accelerate the development and growth of its managed revenue sources, and this deal is in line with the company’s goal of reaching $7.5 billion in revenues by the end of 2023, and after the news, AppLovin’s shares jumped more than 8% in extended trading, while Twitter’s stock climbed 2%.
MoPub’s business raised $188 million in revenue for Twitter in 2020, accounting for approximately 5.9% of the social media platform’s ad revenue and more than 5% of its total sales during the year. Twitter stated that it will reveal additional details regarding the expected financial impact of the deal when it will announce its third-quarter results on October 26, and it is expected that the sale will close during the next year.
The MoPub sale follows Apple’s release of iOS 14.5, the latest version of its mobile operating system that makes it more difficult for advertisers to track users’ activity on iPhones and iPads.
The MoPub network is used by 45,000 applications on smartphones, and the number of users that have been directed to ads through its services has reached 1.5 billion users.
Twitter bought MoPub for $350 million in shares in September 2013, just before it was floated on the stock market, a deal at the time to support Twitter’s ability to generate revenue from mobile advertising.