June 10, 2014

Twitter acquires Namo Media for native advertising capabilities

There are multiple motivations that can make a company interested in an acquisition. In the technology industry especially, an acquisition can be the chance for a company to add valuable technology assets.

This not only increases what the company is able to offer, but obtaining complementary technologies can also help strengthen capabilities and enhance the company's position in the market. 

In April, we discussed Twitter's acquisition of lock‚Äč screen app "Cover," a technology built for the Android operating system that allows users to customize applications on the home screens of their mobile devices. 

It was announced recently that Twitter has made another acquisition. The company has acquired Namo Media, according to a Tech Crunch article. Namo Media creates technology for developers to more easily be able to integrate native advertising into mobile applications. 

This acquisition strategy makes sense for Twitter, as it will allow the company to improve advertising and in turn generate more revenue. The purpose of the technology is to create a more "seamless" advertising experience for Twitter users.

Since 75 percent of Twitter's ad revenues come from users on mobile devices, the ability to be able to make the advertising experience better for this audience could help the company increase revenue. Namo Media's technology could also be used to complement the ad platform MoPub, according Reuters. 

According to Tech Crunch, a source reported that the deal could be for approximately $50 million, however, Reuters reported that the terms of the deal were not disclosed. Last year, Twitter acquired MoPub in a $300 million deal. 

Acquisitions can help a company strengthen its offerings, and its position in the market. An M&A advisor is a trusted resource for companies thinking about mergers and acquisitions.