Twitter, Inc the largest micro blogging site on the planet has agreed to purchase MoPub, the “worlds largest mobile exchange and RTB server for iOs and Android devices for about $350 Million in stock. This will allow twitter to control a large market share of the ever growing mobile and application segment of Digital Media marketing. What does this mean for Twitter users? I predict that they have strategically bought MobPub to add a new dimension of advertising revenue to twitter, which is a goldmine that is primed to be tapped in the near future.
It seems fitting that another digital giant acquired a smaller start up to grab their piece of the run on new and upcoming ad technologies. It was not so long ago that Google bought Youtube, and DoubleClick which worked out quite profitably. MoPub is located in Silicon Valley with just about 100 employees. I bet they are going to have a crazy party with all the money they just recieved. Oh wait.. It’s just stock so they don’t actually receive any cash. That is quite unfortunate and makes me think that they may have not negotiated the best deal due to inexperienced upper level management. 2 Billion mobile impressions a day is in my eyes a goldmine that will keep growing, I guess they sold themselves out to the big fish.
Now that Twitter has it’s foot claw in the door with mobile advertising, it will be interesting to see where they can take this company, or if they will just be another fish in the sea of start ups. Only time will tell.