Twitter Inc (TWTR.N) announced on Wednesday that it has agreed to sell MoPub, a mobile ad company, to AppLovin Corp (APP.O) for $1.05 billion in cash, as the microblogging platform shifts its attention to advertisements on its own app and website.
Similar to Google’s (GOOGL.O) DoubleClick, MoPub allows corporations to track ad inventory in real-time, generating around $188 million in yearly income for Twitter last year.
“The sale of MoPub positions us to concentrate more of our efforts on the massive potential for ads on our website and in our apps,” Twitter Chief Financial Officer Ned Segal said.
Twitter announced on Wednesday that it will concentrate on its core business by speeding up the development of new products and services in order to meet its target of doubling revenue to $7.5 billion by 2023.
The MoPub acquisition comes months after Apple upgraded its mobile operating system, which runs on iPhones and iPads, to make it more difficult for digital advertisers, such as social media platforms and mobile game developers, to follow consumers on Apple devices.
The sale will allow Twitter to invest in “the core products that position it for long-term growth,” Twitter Chief Executive Officer Jack Dorsey said on Wednesday.
In 2013, the social media business paid approximately $350 million for MoPub. As it works to meet its revenue goal of $20 billion by 2023, Twitter has struck a number of transactions with privately held software companies, including audio app Breaker and email newsletter service Revue. Twitter’s board of directors unanimously authorized the sale to AppLovin.
AppLovin, which went public in April, is a mobile gaming firm with over 200 free-to-play mobile games in its portfolio, including “Word Connect,” “Slap Kings,” and “Bingo Story.” In extended trading, the company’s shares were up 9% to $84 while Twitter was up 2% to $62.57.