Twitter announced Wednesday it will offload MoPub - the mobile advertising platform it purchased in 2013 after it sold the company to AppLovin, a mobile game and marketing software manufacturer.
Twitter paid $350 million for MoPub in 2013, and will now sell the company for $1.05billion in cash. According to Twitter, MoPub helped Twitter generate around $188 million in revenue in 2013. Twitter had previously set the goal to double its annual revenue by 2023.
The transaction will increase our focus and demonstrate confidence in our revenue product roadmap. It will accelerate our ability to invest, Jack Dorsey, Twitter CEO, stated in a press release.
Today, we signed an agreement to transfer @mopub's ownership to @AppLovin. We plan to increase focus on O&O product development & replenish near term revenue loss, with the goal of improving time to market to deliver on our previously stated goal of $7.5B or more in 2023.https://t.co/C6d0EURVNI Ned Segal (@nedsegal) October 6, 2021
Ned Segal, Twitter's chief financial officer, described the deal as a way to help the company refocus on what he calls a huge advertising opportunity amid Twitters recent flurry in new product development. Segal stated that Twitter will focus on developing its own products, but it has been investing heavily in acquisitions that align with this vision in recent months.
Twitter made some major changes to its business in 2018, after being largely on cruise control. Twitter has launched a number of products quickly to explore new revenue streams. These include features such as Super Follows or Ticketed Spaces that tap into the creator economy. However, these products are not widely used at this time.
This year, the company made several acquisitions that reflect its new direction. These include Scroll, an ad-free reading tool that is now obsolete but still includes Scroll's great news aggregator Nuzzel, and Revue, a popular newsletter platform.
Twitter also launched Clubhouse-like audio spaces, new interest-based communities, and a variety of experimental features to make the platform less toxic and more enjoyable. All of these features will be in play as Twitter Blue, its paid monthly subscription service, launches.
