AppLovin Sales Jump, Sells Mobile-Games Unit to Tripledot

AppLovin Corp. agreed to sell its video-games unit to London-based Tripledot Studios to focus on its advertising technology business.

The Palo Alto, California-based marketing company is receiving $400 million in cash and a 20% stake in Tripledot, according to a filing on Wednesday.

Applovin shares jumped as much as 19% in extended trading after the company reported first-quarter sales and profit that exceeded Wall Street projections. Revenue rose 40% to $1.48 billion.

Chief Executive Officer Adam Foroughi told investors in February that the company had “never been a game developer at heart” and disclosed that it was in exclusive ...