All-cash deal for MoPub

All-cash deal for MoPub

The middle of the week comes with an all-cash deal for one of Twitter’s companies

The social media behemoth announced the sale of its MoPub mobile advertising network to an ad-tech company and game developer – AppLovin. The deal is worth $1.05 billion in cash and is to be closed next year. To increase the ability to generate revenue from mobile ads, Twitter purchased in September 2013 for about $350 million in stock. From Twitter’s perspective, the deal is just one step toward reaching its goal of scoring $7.5 billion in revenue by the end of 2023. About the agreement, Twitter CEO Jack Dorsey stated: “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.”

MoPub – which provides monetization solutions for mobile app publishers and developers – accounted for nearly 5.9% of Twitter’s 2020 advertising revenue, with figures coming in at $188 million.

The sale is just one of Twitter’s multiple efforts to boost its business in 2021. So far, the company has bought the add-free reading tool Scroll and the newsletter platform Revue. Moreover, it launched Clubhouse-like audio rooms, interest-based communities, and various experimental features to make the platform a more pleasant space to spend time.

After the news hit the wires, Twitter stock price added more than 2%, while AppLovin jumped 8%.

Sources: cnbc.com, techcrunch.com

This information prepared by za.capex.com is not an offer or a solicitation for the purpose of purchase or sale of any financial products referred to herein or to enter into any legal relations, nor an advice or a recommendation with respect to such financial products.

This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation or the particular needs of any recipient.

You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.

This information may not be published, circulated, reproduced or distributed in whole or in part to any other person without the Company’s prior written consent. Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of za.capex.com

JME Financial Services (Pty) Ltd trading as ZA.CAPEX.COM acts as intermediary between the investor and Magnasale Trading Ltd, the counterparty to the contract for difference purchased by the Investor via ZA.CAPEX.COM, authorised & regulated by the Cyprus Securities and Exchange Commission with license number 264/15. Magnasale Trading Ltd is the principal to the CFD purchased by investors.