US-based microblogging platform, Twitter has agreed to sell its mobile ad company MoPub to AppLovin, a game developer and ad-tech company, for $1.05 billion in cash.
Twitter said that the sale is in line with its strategy to accelerate the growth of its owned and operated revenue products by focusing more on advertisements on its own app and website. The divestment is also aligned with the company’s goal of reaching $7.5 billion in revenue by the end of 2023.
MoPub, which generated about $188 million in annual revenue for Twitter last year, allows companies to keep track of ad inventory in real-time, similar to Google’s DoubleClick.
The MoPub deal comes months after Apple updated the mobile operating system that powers iPhones and iPads to make it hard for digital advertisers to track users on Apple mobile devices.
“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 Chief Executive Officer Mr. Jack Dorsey said.
Twitter bought MoPub for nearly $350 million in 2013, just before the company was set to make its public market debut. The purchase was intended to strengthen Twitter’s ability to generate revenue from mobile ads.
This year, Twitter has made a series of deals for privately held tech firms, including podcast app Breaker and email newsletter startup Revue, as it looks to reach its 2023 revenue goal.
AppLovin, which recently went public in April, is a mobile gaming company with a portfolio that includes more than 200 free-to-play mobile games, such as “Word Connect,” “Slap Kings” and “Bingo Story”. The company’s shares were up 9 percent at $84 in extended trading, while Twitter rose 2 percent to $62.57. The sale to AppLovin was unanimously approved by Twitter’s board.
