Twitter buys mobile ads company MoPub for $445 million

The Twitter logo is displayed at the entrance of Twitter headquarters in San Francisco, California, on March 11, 2011. Twitter has bought online mobile-ad exchange MoPub, the company said in a blog post on Monday. -- FILE PHOTO: AFP
The Twitter logo is displayed at the entrance of Twitter headquarters in San Francisco, California, on March 11, 2011. Twitter has bought online mobile-ad exchange MoPub, the company said in a blog post on Monday. -- FILE PHOTO: AFP

SAN FRANCISCO (REUTERS) - Twitter has bought online mobile-ad exchange MoPub, the company said in a blog post on Monday.

The San Francisco-based companies did not disclose terms, but a person familiar with the matter said Twitter paid US$350 million (S$445 million) in stock for MoPub.

The deal has built-in upside for the sellers as it assigned a value of around US$20 to Twitter shares, when in fact the microblogging service's shares are trading in the high US$20s on the secondary market, the person said.

MoPub allows companies to keep track of ad inventory in real time, similar to what Google can do with DoubleClick.

MoPub's venture backers include Accel Partners, Harrison Metal Capital, and Jafco Ventures.

Twitter is considered a hot initial public offering target for 2014.