Twitter To Sell MoPub To AppLovin For $1.05 Bln In Cash

(RTTNews) - Social media company Twitter, Inc. (TWTR) Wednesday said it has agreed to sell MoPub to marketing software company AppLovin Corporation (APP) for $1.05 billion in cash.

Under the terms of the deal, Twitter will provide certain services to AppLovin for a period of time post-close to enable an orderly transition for publishers and advertisers. The transaction is expected to close in the coming months.

Twitter said that the deal will allow the company to accelerate the development of owned and operated revenue products and drive growth across key areas for the service including performance-based advertising, small and medium-sized business (SMB) offerings, and commerce initiatives.

Jack Dorsey, Twitter CEO says: "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."

Ned Segal, Twitter CFO says: "The sale of MoPub positions us to concentrate more of our efforts on the massive potential for ads on our website and in our apps. We plan to accelerate product development and replenish the near term revenue loss, with the goal of improving our time to market to deliver on our previously stated goal of at least doubling total annual revenue from $3.7 billion in 2020 to $7.5 billion or more in 2023."

In 2020, MoPub generated about $188 million in annual revenue, which was reported in Data Licensing and Other.