Monday, April 7, 2014
Twitter Buys MoPub For $350 Million, The Mobile Advertising Company.
We’re also hearing that if you look at the prices that Twitter shares are trading for on secondary markets, the deal could actually be worth significantly more. Neither MoPub, Twitter, nor Accel responded to immediate requests for comment. (Update: both MoPub and Twitter have now confirmed the deal, but not the price. MoPub will continue to work with multiple publishers under its new owner, opening up the possibilities of how Twitter intends to grow its own position in the world of mobile advertising.) If accurate, the deal is a significant acquisition for Twitter, which has been sharpening its focus on revenue generation — specifically by running advertising across its platform in the form of promoted Tweets, ad retargeting services and more.
A MoPub deal would help Twitter specifically in the area of mobile advertising, an area where Twitter appears to be doing quite well already. Last year, Twitter started to make more money out of advertising running on its mobile platform than it did on its desktop product, according to this report in the WSJ based on stats from eMarketer. Twitter declined to comment directly on this trend or how much this signifies in actual revenue.
MoPub as a business works with a number of publishers to help them maximise sales and performance on their mobile ad inventory. For now, it’s unclear whether a Twitter deal would mean that Twitter would become the exclusive customer, so to speak, of this technology, or whether Twitter would use it as a way of branching out its own social graph on to other sites, and other Twitter clients. Given the reports that Twitter has been positioning itself to offer more location-based advertising, MoPub’s own activities in the area of location-based mobile advertising make sense as a good fit for that strategy.
MOPUB RELEASED A STATEMENT.
Three years ago, Bryan, Nafis and I launched MoPub with a mission: to enable great content by powering advertising for the world’s mobile publishers. We had a firm belief that programmatic buying and a strong commitment to serve the publisher would enable the development of a new ads economy in mobile. Since that time, as our team has grown to nearly one hundred employees worldwide, our platform has grown to serve billions of mobile ads every month around the world on behalf of our publishers. Today, I am excited to announce that MoPub has agreed to be acquired by Twitter. Like MoPub, Twitter has been “mobile first” since their inception, which makes our two companies a natural match. It’s important to underscore that our commitment to you, the publisher, will not change. In fact, it will be strengthened. Twitter will invest in our core business and we will continue to build the tools and technology you need to better run your mobile advertising business.
In addition to investing in new capabilities for our publisher platform, we believe there are opportunities to bring better native advertising to the mobile ecosystem. With the support of the team and resources of Twitter, we’ll be able to move even more quickly towards the realization of our original vision. We can’t wait to “join the flock” and continue to build incredible products for publishers. It’s been an amazing ride – and it’s just getting started. My deepest thanks to the MoPub team and everyone who has helped us along the way.
Yours, Jim CEO, MoPub @JimPayne