Twitter’s $350 Million Mobile Acquisition Is A LOT Smaller Than Everyone Expected

jim payne

MoPub, the mobile advertising business that Twitter acquired for $350 million in stock right before it filed for an IPO, had only $6.5 million in net revenue in the first half of 2013, according to a new disclosure by Twitter to the SEC.

Previously, the only gauge of MoPub’s size in the marketplace was an estimated revenue “run-rate” of $100 million. That number presumably included MoPub’s clients’ spending on mobile ads, which is passed through the company. The “net revenue” number is the sales fees and commissions that MoPub keeps for serving its clients.

So people expected MoPub’s net revenue to be smaller than $100 million.

But just $6.5 million over 6 months? From a company that employs about 100 people? That’s a shock to those observing the deal. Twitter didn’t disclose MoPub’s gross revenues, or what the total amount of client spending is behind MoPub’s business.

For comparison, Millennial Media, one of MoPub’s competitors, had net revenues (“gross profit,” as disclosed) of $45 million over the same half-year period on gross revenues of $106 million.

That $6.5 million is up from just $2.7 million in revenue the year before:

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