Twitter said it has agreed to sell mobile advertising company MoPub to AppLovin for US$1.05 billion (approximately Rs 7,850 crore) in because the Weibo platform hopes to pay more attention to ads on its apps and websites.

MoPub generated approximately US$188 million (approximately 14 billion rupees) in annual revenue for Twitter last year. It allows the company to track advertising inventory in real time, similar to Google’s DoubleClick.

“The sale of MoPub allows us to focus more on the great potential of our website and app advertising,” said Ned Segal, Twitter’s chief financial officer.

Twitter said on Wednesday that it will focus on its core business by accelerating the development of new products and features to achieve its goal of doubling its revenue to US$7.5 billion (approximately Rs 56,090 crore) in 2023.

The MoPub deal was reached a few months after Apple updated its mobile operating system for iPhone and devices, which made it difficult for digital advertisers (including social media platforms and mobile game developers) to track users on Apple mobile devices .

Twitter CEO Jack Dorsey said on Wednesday that the sale will enable Twitter to invest in “core products that will enable its long-term growth.”

The social media company acquired MoPub for nearly US$350 million (approximately Rs 26.2 billion) in 2013.

Twitter reached a series of deals with private technology companies this year, including podcasting app Breaker and email startup Revue, in order to achieve its 2023 revenue target.

The sale of AppLovin was unanimously approved by Twitter’s of directors.

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AppLovin was recently listed in April. It is a mobile game company whose product portfolio includes more than 200 free mobile games such as Word Connect, Slap Kings and Bingo Story.

The company’s share price rose 9% to $84 (approximately Rs 6,280) in the extended transaction, while Twitter rose 2% to $62.57 (approximately Rs 4,680).

© Thomson Reuters 2021