Twitter is putting an end to its Mobile advertising platform MoPub in a deal worth $1.5 billion. They are going to sell the platform to AppLovin who is a mobile game maker and marketing software provider.
At the moment Twitter is investing heavily in new products to grow the overall platform and make it easier for users. Offloading MoPub for that amount of cash will help Twitter to invest in sectors where they will see growth.
In the press release that announces the sale, Twitter’s GM of revenue products, Bruce Falck sees it as a net positive for Twitter.
“With the sale of MoPub completed, we continue to concentrate our efforts on enhancing ads across our platform. Our goal is to deliver faster growth in key areas and accelerate our product development,” he said.
Adam Foroughi, AppLovin’s co-founder and CEO, also sees this move as a positive move for AppLovin despite the changes the advertising industry has to adapt to over the last few years.
“Developers benefit from more features to help drive higher monetization opportunities and streamline workflows, leading to increased revenue for their businesses. We believe the power of this unified platform will be unparalleled in today’s market,” he said.
He also went on to state that he sees this as a strategic acquisition that will pay off for the future of AppLovin.
“We are excited to execute on this strategic acquisition with our sights set on operating the largest and most robust in-app advertising platform that enhances the growth of the broader mobile app ecosystem.”
If I should take the co-founder’s word for it, this might be a positive move for AppLovin. If they play their cards right, their acquisition might seem like a bargain given the potential the advertising industry has.
