Twitter announced that it has agreed to sell mobile ad startup MoPub to AppLovin Corp for $1.05 billion in cash, as the company platform shifts its attention to advertisements on its own app and website.
Similar to Google’s DoubleClick, MoPub allows corporations to track ad inventory in real-time, generating around $188 million in annual income for Twitter last year.
Twitter stated 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.
Twitter CEO Jack Dorsey stated that the transaction will allow the company to focus on “core products that position it for long-term development.”
Twitter Chief Financial Officer Ned Segal remarked, “The sale of MoPub positions us to focus more of our efforts on the tremendous potential for ads on our website and in our apps.”
In 2013, the social media business paid approximately $350 million for MoPub.
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.”
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.