The micro-blogging site originally paid $350 million for the company eight years ago.
In 2020, MoPub generated annual revenues of $188 million.
As to the reasons, Twitter said the transaction would help drive its development and allow the company to scale key areas of service and advertising for SMBs.
“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,” said Jack Dorsey, Twitter’s CEO. “We thank the incredible teams and customers who have contributed to making MoPub a success within Twitter over the years.”
CFO Ned Segal added that the sale would allow Twitter to focus its efforts on the potential for ads across its website and its 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 $3.7bn in 2020 to $7.5bn or more in 2023,” Segal added.
The purchase marks AppLovin’s second acquisition in 2021, following a deal to acquire Adjust in April which reportedly fetched $1 billion.