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Twitter acquires native advertising start-up Namo Media

Twitter is a popular microblogging service.
Twitter is a popular microblogging service.
Photo by Bethany Clarke/Getty Images

Twitter announced Wednesday that it is buying Namo Media, a mobile-focused native advertising firm. This acquisition is the next step in building up Twitter's native ad tech business, which it jump-started in September of last year with the purchase of MoPub.

Terms of the acquisition were not disclosed, although TechCrunch claims that "reliable sources" have pegged the deal at around $50 million.

This announcement proved to be good news for Twitter's place in the stock market, which has been suffering since the beginning of 2014. On Wednesday shares of Twitter's stock rose 99 cents or 3% to finish the day at $33.89. It's also a good move on Twitter's part in relation to the escalating competition with Facebook and Google for mobile ad dollars.

Twitter VP of Product stated in a post on the Twitter blog:

In our conversations with the Namo Media team, it became clear we share a vision for how native advertising can improve the state of mobile app monetization for marketers, app publishers, and users. We’re thrilled to add Namo Media’s expertise and technology to the ecosystem MoPub and Twitter have already developed to continue building the best native ads platform for app developers and publishers.

Native advertising is a rising star in the online commercial world, especially as mobile usage has skyrocketed in recent years. Instead of the disruptive nature of banners or pop-ups, native ads seek to blend into content in order to provide a more seamless experience.

This is especially important for mobile users, who often find frustration in traditional ads because they disrupt mobile usage more than they would on a computer screen. Those types of ads are also more easy to ignore because users have gotten used to them - making native advertising all the more important for the forward-thinking business.

Twitter has experimented with native ads in its own app through tactics like promoted tweets and, more recently, Twitter cards. The addition of MoPub and Namo Media will bolster Twitter's own native advertising tech as well as help Twitter in its quest to expand to native advertising tech in general.

Namo Media is based in San Francisco and has been backed by a number of top investors, including Google Ventures, Andreessen Horowitz, Betaworks, Trinity Ventures, Susa Ventures, Chung-Man Tam, Kevin Scott, Garrick Toubassi, Ben Ling, Michael Levit, Tikhon Bernstam, and Paul Buchheit.

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