Twitter’s MoPub acquisition pays off following IPO
There's been a lot of great news for Twitter lately, ever since the company's IPO saw prices soaring from $26 per share to more than $40. Of course, this is also good for companies that the social network recently purchased, like MoPub.
Back in September, this blog featured a post about the technology merger between the two. As we noted, this was Twitter's largest acquisition for $350 million. However, it was an investment that was meant to pay off. MoPub is an advertisement serving platform that is designed specifically for mobile devices. Twitter sought it out in order to improve its own advertisements, which fund the entire company, by making it easier for ad buyers to target consumers.
According to a recent article on USA Today, the deal has since paid off wonderfully for the small startup. In fact, now that Twitter's market value is more than $18 billion, the deal to acquire MoPub may also increase. The news source reported that the startup is now worth about $595 million in stock after the IPO.
MoPub CEO Jim Payne and a number of employees and investors received 13.18 million shares and 1.24 million options as part of the deal.
This is only the beginning. The news source notes that MoPub could help Twitter compete for advertisers against Facebook and Google, who have aggressively courted and developed their own systems. At some point in the future, the startup could be worth even more to Twitter, which shows that a well timed technology acquisition can be highly beneficial to both parties in the deal.