Twitter Inc has said it will sell MoPub, the mobile ad company it bought in 2013, to the mobile game and marketing software maker AppLovin Corp, as it looks to focus more on its app and website advertisements.
Twitter, which had bought MoPub for nearly $350 million, has agreed to sell its mobile ad platform for $1.05 billion in cash.
The microblogging site also said that it will focus on its core business by accelerating the development of new products and features to achieve its goal of doubling its annual revenue from $3.7 billion in 2020 to $7.5 billion in 2023.
Jack Dorsey, CEO, Twitter, said, "This transaction increases our focus and demonstrates confidence in our revenue product roadmap, accelerating our ability to invest in the core products that position Twitter for long-term growth and best serve the public conversation."
MoPub, which generated annual revenue of around $188 million for Twitter in 2020, allows companies to keep track of their advertisement inventory in real-time, similar to Google's demand-side platform DoubleClick.
Ned Segal, Chief Financial Officer, Twitter, said, "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."
This deal comes months after Apple updated IOS – the operating system that powers iPhones and iPads -- to make it difficult for online advertisers, including mobile game developers and social media platforms to track users on Apple devices.
Apart from this, Twitter has also made several major moves to shake up its business strategy this year and is gearing up for the launch of its paid monthly subscription service Twitter Blue.
Twitter, which is now exploring new revenue streams, has launched features like Super Follows and Ticketed Spaces to tap into explosive growth in the creator economy.
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