Twitter Inc said on Wednesday it has agreed to sell mobile advertising company MoPub to AppLovin Corp for $1.05 billion in cash, as the microblogging platform focuses more on ads on its app and website.
MoPub, which generated nearly $188 million in annual revenue for Twitter last year, allows companies to keep track of ad inventory in real-time, similar to Google’s DoubleClick.
“The sale of MoPub prompts us to focus our efforts more on the wider potential of ads on our website and on our apps,” said Ned Segal, Twitter’s chief financial officer.
Twitter said on Wednesday that it will focus on its core business by accelerating the development of new products and features to achieve its goal of doubling its revenue to $7.5 billion in 2023.
The MoPub deal comes months after Apple updated its mobile operating system such as iPhones and iPads to make it harder for digital advertisers, including social media platforms and mobile game developers, to track users on Apple mobile devices.
Twitter Chief Executive Officer Jack Dorsey said Wednesday that the sale will allow Twitter to “invest in core products that position it for long-term growth.”
The social media company bought MoPub in 2013 for about $350 million.
Twitter has struck several deals for privately held tech firms this year, including podcast app Breaker and email newsletter Startup Review, as it looks to reach its 2023 revenue target.
The sale to AppLovin was unanimously approved by Twitter’s board.
AppLovin, which recently went public in April, is a mobile gaming company with a portfolio that includes more than 200 free-to-play mobile games, such as “Word Connect,” “Slap Kings” and “Bingo Story.”
Shares of the company rose 9% to $84 in extended trading, while Twitter gained 2% to $62.57.
