Twitter Inc has agreed to sell mobile ad company MoPub to AppLovin Corp for $1.05 billion in cash.
MoPub generated about $188 million in annual revenue for Twitter last year.
MoPub allows companies to keep track of ad inventory in real time, similar to Google’s DoubleClick.
Twitter will now focus on its core business by accelerating development of new products and features to achieve its goal of doubling its revenue in 2023 to $7.5 billion.
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.
Twitter bought MoPub for nearly $350 million in 2013.
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”.