Yahoo to take 25% stake in Taboola in 30-year exclusive commercial agreement
Yahoo and native advertising platform Taboola have entered into a 30-year exclusive commercial agreement that will see the digital conglomerate receive 24.99% of the pro forma equity of Taboola.
Through the deal, Taboola will exclusively power native advertising across Yahoo’s digital properties, and will also be available to buy through the Yahoo DSP.
Through the partnership, Taboola’s native advertising solution will help Yahoo to deliver greater reach, better campaign performance and improve user experience for the nearly 900 million worldwide monthly users Yahoo is said to reach across mail, sports, finance and news.
“Yahoo is an internet pioneer, representing one of the largest, most trusted and most sophisticated publishers in the world,” said Adam Singolda, founder and CEO of Taboola.
“Everywhere I look, I see a rocket ship growth opportunity for both of us – native, ecommerce, video, header bidding (display) and more. This win-win partnership will meaningfully accelerate our growth flywheel, expanding our reach to more users on the open web with high-intent traffic to provide world-class solutions for advertisers, publishers, merchants and users in a cookieless world.
“For publishers in the open web, we’ll be able to invest even more in driving revenue, engagement and audience growth moving forward, empowering performance, brand advertisers, merchants as well as agencies with an immense reach to users in a premium, trusted environment. This partnership is a big step toward achieving our goal of generating $US1 billion in ex-TAC* by 2025.”
Under the terms of the agreement, Yahoo will become Taboola’s biggest single shareholder, receiving 24.99% of Taboola’s issued and outstanding shares on a combined post-transaction basis, with approximately 60% in standard ordinary shares and 40% in new non-voting ordinary shares. Yahoo will also have one representative on the Taboola Board of Directors.
Adam Singolda, CEO of Taboola
“Partnering with Taboola enables Yahoo to further enhance the contextual and native offerings within our unified advertising stack,” said Jim Lanzone, CEO of Yahoo. “The partnership also allows Yahoo and Taboola to continue to differentiate in market, improving user, advertiser and publisher experiences across properties, while benefiting from the long-term tailwinds in digital native advertising. Together with Taboola, we will maximise reach and campaign performance for advertisers, enhance monetisation opportunities for publishers, and drive improved, privacy forward experiences for users. As we continue to build the next era of Yahoo, we are thrilled to have strong partners by our side.”
Having been approved by both company’s board of directors, the agreement is expected to close in the first quarter of 2023, subject to shareholder and regulatory approvals as well as closing conditions.
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