Leading social network company Twitter Inc. (TWTR) announced having reached an agreement to sell its mobile ad unit MoPub to AppLovin Corp. (APP) in a cash deal worth $1.05 billion. AppLovin is a tech company which gives mobile app developers most powerful set of solutions to grow their apps.
Twitter says that it resolved to sell MoPub so as to focus on its own social media application and website. The company said it will focus on its main business by speeding development of new products and features with an aim of doubling its revenue by 2023.
“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,” said Twitter’s chief financial officer, Ned Segal.
MoPub allows companies to keep track of ad inventory in real time, the company generated annual revenue of about $188 million last year.
Jack Dorsey, the chief executive officer of Twitter says that this sale will enable the company to invest in the core products which position it for long-term growth.
Twitter acquired MoPub back in 2013 for about $350 million.