Twitter is selling mobile ad unit MoPub to marketing software company AppLovin Corporation, which runs free mobile games, for $US1.05 billion in cash.
The microblogging platform says it wants to focus on growth including performance-based advertising, small and medium-sized business (SMB) offerings, and commerce initiatives.
Twitter CEO Jack Dorsey: "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."
The company aims to at least double total annual revenue to $7.5 billion or more in 2023 from $3.7 billion in 2020.
In 2020, MoPub, which keeps track of ad inventory in real-time, generated about $188 million in annual revenue.
The sale comes follows Apple's new version of its operating system making it difficult for advertisers and social media platforms to track users on their iPhones.
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