Twitter (TWTR) is parting ways with its subsidiary, MoPub, as it sells off the mobile ad firm to AppLovin Corp (APP) for an approximately $1.1b price tag. The company came under Twitter’s (metaphorical) wings in 2013 as part of a $350m acquisition.
MoPub basically helps developers integrate monetization features into their apps by offering a platform where they connect with businesses who want to advertise. The company had revenues of $188m in 2020 and a customer base of 45k apps. The sale comes due to Twitter’s bid to streamline its operations, as the company aims for a two-fold revenue increase by 2023.
While impressive in its customer base, MoPub doesn’t fit into Twitter’s main platform and its sell-off gives @jack time to focus on new features like e-commerce integration. AppLovin comes as the ideal new home for MoPub, as the firm specifically positions itself as an all-stop shop for new developers — equipping them with marketing tools like the ones MoPub has to offer.
why it matters
This seems like a win-win for both parties — Twitter gets some time off while AppLovin adds a new member to its family. Twitter's stock was up by 4.4% yesterday, while AppLovin shares saw a 10.3% increase.