Twitter (TWTR) will sell its app monetization unit to marketing software developer AppLovin (APP) for $1.05 billion in cash, it was announced late Wednesday. Twitter stock rose.
Its decision to sell the business, called MoPub, will “accelerate the development of owned and operated revenue products and drive growth across key areas for the service including performance-based advertising,” the company said.
Twitter also said the sale is part of its previously stated goal of at least doubling total annual revenue from $3.7 billion in 2020 to $7.5 billion or more in 2023.
“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,” Twitter Chief Executive Jack Dorsey said in written remarks with the announcement.
Twitter stock moved up 2.5%, near 62.85, during after-hours trading on the stock market today. During the regular session, Twitter stock climbed 2.4%.
AppLovin stock jumped 8%, near 83.25 during after-hours trading.
AppLovin held its initial public offering in April. It’s a marketing software developer and provides tools for monetizing apps.
“We are excited by the opportunity to grow the AppLovin platform and further enhance our publisher monetization tools through this strategic transaction,” Adam Foroughi, AppLovin’s co-founder and chief executive, said in written remarks.
In 2020, MoPub generated approximately $188 million in annual revenue.
Twitter reported having 206 million active daily users at the end of the second quarter. Twitter stock is up 13% this year.
(Except for the headline, this story has not been edited by The Finance World staff and is published from a syndicated feed.)
