Apple and other companies are planning to sell search and gaming apps in the App Store to raise cash for a new round of financing.
The move is part of the latest effort to try to shore up a cash-strapped Apple after losing more than $40 billion in the last quarter, and is a direct response to the company’s quarterly losses.
The two companies said Wednesday that they have entered into a definitive agreement that will allow them to sell all of their search and entertainment apps in a single App Store, and to offer a broader range of apps.
The deal, which will also allow Apple to expand its mobile operating system portfolio to include video and audio apps, is expected to close by the end of the year, the companies said.
The two companies will also pay Google for the right to use their trademarks and apps.
The deal will also let Google use its Google Play store as a hub for its other apps.
That means Google will be able to add its apps and games to a wider range of iOS devices, including smartphones and tablets.
The new round is expected a $1 billion financing round that would help the companies raise about $2 billion more than they need to fund the next round of spending on a new product or services.
It is also expected to help them keep up with the growth of Google Play, which has expanded rapidly since it began selling apps last year.
A Google spokeswoman said the deal is still in its early stages.
Apple is looking for ways to make its apps more appealing to consumers, including making it easier to download them, and it has been working with developers to offer better user experience.
Apple also wants to be more transparent about what kinds of apps and services it offers, and more widely distribute its apps, said Lisa Macioti, an analyst at Sanford C. Bernstein.
But she said it is hard to predict exactly how this deal will affect Apple’s overall business.
Apple’s search, for example, has been among the best in the world.
But Apple’s video apps have struggled to compete with Google’s.