Twitter said it has agreed to sell mobile advertising company MoPub to AppLovin for $1.05 billion (about Rs 7,850 crore) in cash, as the microblogging platform focuses more on ads on its app and website.
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 sale of MoPub prompts us to focus our efforts more on the wider potential of ads on our website and on our apps,” said Ned Segal, Twitter’s chief financial officer.
Twitter on Wednesday said it will focus on its core business by accelerating development of new products and features to achieve its goal of doubling its revenue to $7.5 billion (about Rs 56,090 crore) in 2023.
The MoPub deal comes months after Apple updated its mobile operating system to make iPhone handsets and iPad devices harder for digital advertisers, including social media platforms and mobile game developers, to track users on Apple mobile devices.
Twitter Chief Executive Officer Jack Dorsey said Wednesday that the sale will allow Twitter to “invest in key products that position it for long-term growth.”
The social media company bought MoPub in 2013 for approximately $350 million (about Rs 2,620 crore).
Twitter has struck a number of deals this year for privately held tech firms, including podcast app Breaker and email newsletter Startup Review, as it looks to reach its 2023 revenue target.
Twitter’s board unanimously approved the sale of Applovin.
Applovin, which recently went public in April, is a mobile gaming company with a portfolio that includes over 200 free-to-play mobile games such as Word Connect, Slap Kings and Bingo Story.
Shares of the company were up 9 per cent at $84 (around Rs 6,280) in extended trading, while Twitter rose 2 per cent to $62.57 (about Rs 4,680).
© Thomson Reuters 2021