The sale of the app monetisation solutions business is expected to help Twitter increase its focus on its revenue product roadmap and enable it to make investments in core products
AppLovin to acquire app monetisation solutions provider MoPub. (Credit: Thomas Ulrich from Pixabay)
Social media major Twitter has agreed to divest MoPub to AppLovin, a US-based marketing software company, in an all-cash deal worth $1.05bn.
MoPub is engaged in providing monetisation solutions for mobile app publishers and developers around the world. The company had registered nearly $188m in annual revenue in 2020.
The mobile-focused advertising exchange is part of Twitter’s ‘data licensing and other’ division.
MoPub was founded in 2010 and was acquired by Twitter in 2013. Currently, its marketplace is claimed to bring together thousands of apps and more than 100 demand-side platforms (DSPs).
Twitter said that the deal will allow it to expedite the development of owned and operated revenue products. Besides, it will enable the firm to bring in growth across performance-based advertising, commerce initiatives, and small and medium-sized business (SMB) offerings.
The microblogging platform further stated that AppLovin is well-positioned to expand and evolve MoPub’s network of customers in the quickly changing in-app industry.
Twitter CEO Jack Dorsey said: “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.”
As per the terms of the agreement, Twitter will be responsible for certain services to AppLovin for a period of time after the deal closing to facilitate an orderly transition for advertisers and publishers.
AppLovin has been focused on developing tools such as MAX and AppDiscovery to help mobile app developers in their business growth.
The marketing software company said that the combination of the best of MoPub and its own platform will benefit customers and partners, while improving the growth of the mobile app ecosystem.
AppLovin co-founder and CEO Adam Foroughi said: “We are excited by the opportunity to grow the AppLovin platform and further enhance our publisher monetisation tools through this strategic transaction.
“We welcome the MoPub team and together we will work diligently to combine the best of MoPub into the AppLovin software platform.”
The deal, which is subject to regulatory approvals and customary closing conditions, is anticipated to close in the coming months.