Twitter completes MoPub sale to AppLovin for $ 1.05 billion - TechCrunch
Twitter announced today that it has completed the sale of its mobile advertising platform, MoPub, to mobile game maker and marketing software provider AppLovin for $ 1.05 billion in cash. The deal was first announced in October 2022, after Twitter revealed about its plan to double its revenue by 2023 to reach $ 7.5 billion or more. While MoPub helped Twitter generate approximately $ 188 million in annual revenue in 2022, Twitter is now seeing greater potential in developing other areas of the industry amid the accelerated development of Twitter. its results. In particular, the company said it is now redirecting its resources towards performance-based advertising, SMB and commerce.
Today, Twitter confirmed its plans to further develop its own products.
“With the completion of MoPub sales, we continue to focus our efforts on promoting ads across our platform. Our goal is to deliver faster growth in key areas and accelerate the development of our product, ”Bruce Falck, GM of GM of Revenue Results, said in a press release.
Previously, Twitter CFO Ned Segal had noticed how MoPub's sales allowed Twitter to focus on "huge potential for ads" on its website and mobile apps.
But the agreement also represents an opportunity for Twitter to invest in new areas of the industry that could allow its revenue model to expand beyond just advertising. The company, over the past year or so, has greatly accelerated the pace of product development with launches such as its audio chat rooms called Twitter Spaces, newsletters (through its Revue purchase), online communities, Birdwatch misinformation debunking project, Twitter Twitter paid membership service, creative economy tools and features like Super Follow and tipping, crypto, e-commerce including live shopping, and more. Taken together, these results leave Twitter more opportunities to generate revenue in new ways - such as commissions on ticketed or subscribed events, for example.
MoPub sales also came at a time when the mobile advertising industry was in turmoil with changes implemented by Apple in its latest version of iOS mobile operating system. With Apple's new privacy - focused tools, more users can now choose not to be overwhelmed by apps and advertisers, making business like MoPub much more interesting for Twitter. AppLovin, however, sees the opportunity to take advantage of MoPub’s side-by-side application and provisioning tools into its larger in-app mediation platform, MAX, followed by the migration of publishers and com -parties application to the unified platform, further growing its business. The company says it expects to process more than $ 15 billion in annual advertising cost by 2023.
At the time of the deal, MoPub software was used by 45,000 mobile apps to manage their monetization and reached 1.5 billion address users worldwide, AppLovin said. Today, more than 150 DSPs, representing thousands of brands and organizations, now have direct access to the AppLovin Exchange, the company adds.
“Developers are benefiting from more features to help drive higher monetization opportunities and streamline workflows, leading to more revenue for their businesses. We believe that the power of this unified platform will be unparalleled in today's marketplace, ”Adam Foroughi, co-founder and CEO of AppLovin, said in a statement. “We are thrilled to achieve this strategic build with our vision based on operating the largest and strongest in-app advertising platform that will contribute to the growth of the wider mobile app ecosystem. ”
Construction was expected to close in early 2022.
Twitter today announced that the MoPub platform, including network centralization, Advanced Bidding and Marketplace, will go under the sun on March 31, 2022. The MoPub Dashboard and Report will be available until 8 April, 2022. Publishers will have a 90-day transition period close to migrating from the MoPub platform to AppLovin’s MAX platform.