SAN FRANCISCO, Oct. 6, 2021 /PRNewswire/ -- Twitter, Inc.
(NYSE: TWTR) today announced that it has entered into a definitive
agreement to sell MoPub to AppLovin Corporation (NASDAQ:
APP), a leading marketing software company, for
$1.05 billion in cash.
The transaction will enable Twitter to accelerate the
development of owned and operated revenue products and drive growth
across key areas for the service including performance-based
advertising, small and medium-sized business (SMB) offerings, and
commerce initiatives. Twitter believes AppLovin is well positioned
to grow and evolve MoPub's network of customers in the rapidly
changing in-app industry.
Jack Dorsey, Twitter CEO says:
"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. We thank the incredible teams
and customers who have contributed to making MoPub a success within
Twitter over the years."
Ned Segal, Twitter CFO says: "The
sale of MoPub positions us to concentrate more of our efforts on
the massive potential for ads on our website and in our apps. We
plan to accelerate product development and replenish the near term
revenue loss, with the goal of improving our time to market to
deliver on our previously stated goal of at least doubling total
annual revenue from $3.7 billion in
2020 to $7.5 billion or more in
Bruce Falck, Twitter Revenue
Product Lead adds: "The sale of MoPub is all about increased focus,
redirecting our resources and delivering faster growth in a number
of key areas including performance-based ads, SMB and commerce.
We're confident AppLovin will be a great home for MoPub as they
will further invest in the business, driving strong monetization
for publishers and their customers."
In 2020, MoPub generated approximately $188 million in annual revenue, which was
reported in Data Licensing and Other. The Company will provide
additional details regarding the estimated future financial impact
when it reports financial results for the third quarter on
October 26, 2021, after market
As a reminder, the Company will record a charge to operations
during the third quarter of 2021 for the $809.5 million litigation settlement it announced
on September 20, 2021.
Under the terms of the agreement, Twitter will
provide certain services to AppLovin for a period of time
post-close to enable an orderly transition for publishers and
advertisers. The transaction, which was unanimously approved by the
Twitter Board of Directors, is expected to close in the coming
months, subject to customary closing conditions, including receipt
of regulatory approval.
About Twitter, Inc.
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talking about right now. To learn more, visit about.twitter.com and
follow @Twitter. Let's talk.
This press release
contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements generally relate
to future events or Twitter's future financial or operating
performance. In some cases, you can identify forward-looking
statements because they contain words such as "may," "will,"
"should," "expects," "plans," "anticipates," "going to," "could,"
"intends," "target," "projects," "contemplates," "believes,"
"estimates," "predicts," "potential," or "continue," or the
negative of these words or other similar terms or expressions that
concern Twitter's expectations, strategy, priorities, plans, or
intentions. Forward-looking statements in this press release
include, but are not limited to, statements regarding the sale of
MoPub, including the expected benefits of the transaction and the
effect of the transaction on Twitter's business and financial
performance, as well as expected timing of the closing, and
statements regarding the MoPub business after the closing;
Twitter's business plans and strategies, including areas of focus
and investment; Twitter's future financial and operating
performance, including its growth opportunities and its outlook,
guidance and financial goals, and assumptions underlying such
outlook, guidance, and financial goals, as well as statements
regarding the settlement of a class action lawsuit. Twitter's
expectations and beliefs regarding these matters may not
materialize, and actual results in future periods are subject to
risks and uncertainties, including changes in our plans or
assumptions, that could cause actual results to differ materially
from those projected. These risks include the possibility that: the
MoPub transaction does not close on the expected timeline or at
all, the parties are unable to secure required regulatory approvals
or otherwise satisfy other closing conditions in a timely manner,
or at all, the Company incurs unexpected costs or liabilities,
or that the Company does not realize the expected benefits of the
transaction; the COVID-19 pandemic and related impacts will
continue to adversely impact our business, financial condition, and
operating results and the achievement of our strategic objectives,
as well as the markets in which we operate and worldwide and
regional economies; Twitter's total accounts and engagement do not
grow or decline; Twitter's strategies, priorities, or plans take
longer to execute than anticipated; Twitter's new products and
product features do not meet expectations or fail to drive mDAU
growth; advertisers continue to reduce or discontinue their
spending on Twitter; data partners reduce or discontinue their
purchases of data licenses from Twitter; and Twitter experiences
expenses that exceed its expectations. The forward-looking
statements contained in this press release are also subject to
other risks and uncertainties, including those more fully described
in Twitter's Annual Report on Form 10-K for the fiscal year ended
December 31, 2020, and Twitter's
Quarterly Report on Form 10-Q for the fiscal quarter ended
June 30, 2021, filed with the
Securities and Exchange Commission. The forward-looking statements
in this press release are based on information available to Twitter
as of the date hereof, and Twitter disclaims any obligation to
update any forward-looking statements, except as required by
SOURCE Twitter, Inc.