Focus On The Core And Deliver On Sales
Twitter said on Wednesday that it will sell MoPub, the mobile ad platform it acquired in 2013, to AppLovin, a producer of mobile games and marketing tools.
MoPub was purchased by Twitter for $350 million in 2013 and will be sold for $1.05 billion in cash. According to Twitter, MoPub helped the business generate $188 million in revenue last year. Twitter had previously stated that it wanted to double its yearly revenue by 2023.
Elliott Management's Request For Change
Elliott Management, the hedge fund managed by Paul Singer, purchased a 9% stake in the company back in 2020. The hedge fund had a long list of demands, including Dorsey's resignation as CEO in order to place a more focussed CEO at the helm and better exploit Twitter's monetisation opportunities.
- To avoid a highly public feud, Elliott and Twitter finally reached an agreement, which included Elliott partner Jesse Cohn joining Twitter's board of directors
- Twitter has since then taken a series of efforts to shake up its business. It is experimenting with new income sources that tap into the creator economy's tremendous growth in a series of rapid-fire product releases
Advertising And Monetisation First
In the middle of Twitter's recent frenzy of new product development, CFO Ned Segal described the sale as a means for the business to centre around what he views as a "massive" advertising potential.
Twitter, according to Segal, would instead focus on creating its own owned and operated products, despite the fact that it appears to have been investing heavily in acquisitions that align with that goal in recent months.
Please note that this article does not constitute investment advice in any form. This article is not a research report and is not intended to serve as the basis for any investment decision. All investments involve risk and the past performance of a security or financial product does not guarantee future returns. Investors have to conduct their own research before conducting any transaction. There is always the risk of losing parts or all of your money when you invest in securities or other financial products.