Twitter Inc. today announce It has completed the sale of its MoPub mobile advertising business to AppLovin Corp. for $1.05 billion.
The deal officially closed on Saturday, January 1, two months after Twitter and AppLovin first announced the sale.
MoPub operates a cloud platform that enables mobile developers to make money from their apps by serving users personalized ads. MoPub became part of Twitter through a $305 million acquisition in 2013. The $1.05 billion that the social network sold the unit from represents more than three times its original purchase price.
As part of Twitter, MoPub has grown into a company with annual revenue of approximately $188 million in 2020. However, the unit still represents only a small portion of the parent company’s revenue: Twitter generated $1.284 billion in revenue last quarter.
When Twitter announce Selling MoPub to AppLovin in October, the social network said the move would enable it to double its core advertising business. Twitter, in particular, said the sale of MoPub would make it possible to focus “more of our efforts on the tremendous potential of ads on our website and in our apps.”
Twitter earlier this year set a goal of at least doubling sales, to $7.5 billion, by the end of 2023. The company also hopes to accelerate the development of new features along the way.
In the meantime, AppLovin will use the technology it acquired through the acquisition of MoPub to strengthen its position in the mobile market. AppLovin provides software products that help mobile developers make money from their apps through advertising, managing marketing campaigns, and performing other tasks. The Nasdaq-traded company reported revenue of $727 million in its most recent fiscal quarter, up 90% year over year.
AppLovin is currently integrating MoPub’s mobile advertising technology with its MAX mobile advertising platform. MAX allows mobile developers to sell ad real estate in their apps through auctions in which they can attract offers from multiple brands. The platform also helps developers with related tasks such as improving ad revenue.
AppLovin has already integrated many of the core MoPub features into its MAX platform. The company plans to close three of the original MoPub platform’s core components, its network brokerage, advanced bidding features, and marketplace, on March 31. MoPub’s dashboard and reporting features will remain available until April 30. AppLovin said it will help customers directly “with the transition from MoPub to MAX.
MAX is one of the many software products that AppLovin provides to mobile developers. It also offers AppDiscovery, which helps developers acquire more users, and Adjust, a tool for tracking the effectiveness of mobile app marketing campaigns. AppLovin generates another portion of its revenue from its SparkLabs business, which provides advertising and display related design services.
The sale of MoPub comes on the heels of another high-profile acquisition in the digital advertising market. Last month, Microsoft signed an agreement for Buy Ad Technology Unit Xandr Inc. Affiliated with AT&T Inc. for an undisclosed amount. The deal marks the second acquisition Microsoft has made in recent memory to grow its advertising business. tech giant Previously It bought a startup called PromoteIQ in 2019 whose platform allows online retailers to place product promotions from suppliers on their websites.
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