A leading partnership for advertisers, publishers and marketers on the Open Web that will generate approximately $1 billion in annual revenue.
● Taboola will power native exclusively on Yahoo’s iconic digital properties, which reach nearly 900 million monthly active users worldwide.
● This represents an exciting new strategic step for Yahoo, which continues to drive growth and innovation under new leadership. Creates a massive new contextual channel for advertisers to reach consumers.
● A Yahoo representative joins Taboola’s board of directors as the largest shareholder.
● Taboola is hosting a conference call for investors today at 8:30 a.m. (Paris time).
Yahoo and Taboola (NASDAQ: TBLA), today announced that they have entered into an exclusive 30-year commercial agreement. Taboola will exclusively power native on all Yahoo digital properties and will be available for purchase through Yahoo’s DSP, establishing Taboola as a leading native offering for advertisers, publishers and merchants on the Open website.
Through this unique partnership, Taboola will benefit from Yahoo’s scale as a leading consumer technology company reaching nearly 900 million monthly active users worldwide and as a leading Internet property in the sports, finance and current affairs. By powering Yahoo’s native solutions, Taboola will help deliver greater reach, better campaign performance and improved user experience, supporting brands that continue to seek alternative options outside of the Walled Garden. Taboola will continue to invest heavily in R&D, improving the way people discover topics they may be interested in, and strengthening its leadership in contextual . As part of this partnership, Yahoo will receive nearly 25% of the pro forma capital of Taboola. The partnership will enable Yahoo to enhance its own unified offerings for advertisers, enhance the consumer experience across Yahoo-owned media properties, and participate in significant shared value creation as the largest single shareholder of taboola.
“Yahoo is a pioneer of the Internet, representing one of the largest, most trusted and sophisticated publishers in the world“, said Adam Singlefounder and CEO of Taboola. “Everywhere I look I see incredible growth opportunity for both of us – native, e-commerce, video, header bidding (display) and more. This win-win partnership will significantly accelerate our growth, expanding our reach to more users on the Open Web guy high-intent traffic, to provide world-class solutions for advertisers, publishers, merchants and users in a cookie-free world. For publishers on the Open Web, we will be able to invest even more in revenue, engagement and audience growth in the future, enabling performance advertisers, brand advertisers, merchants as well as agencies to reach users in an environment of trust and quality. This partnership is a big step towards achieving our goal of generating $1 billion in ex-TAC* by 2025.”
“Taboola has been our trusted partner for a long time and their new Header feature Bidding is very interesting for us”said Matt LeardiniChairman of iMedia Digital Services. « Thanks to our long-standing partnership, their technology has given us a clear competitive advantage. With the Header Bidding of Taboola, we have a very important potential to develop our activity together”.
“Partnering with Taboola allows Yahoo to further enhance contextual and native offerings within our ad inventory“, said Jim LanzonePDG de Yahoo. “The partnership also allows Yahoo and Taboola to continue to differentiate themselves in the marketplace, improving experiences for users, advertisers and publishers across all properties, while benefiting long-term from the momentum digital native . With Taboola, we will maximize campaign reach and performance for advertisers, improve monetization opportunities for publishers, and provide enhanced, privacy-respecting user experiences. As we continue to build the next era of Yahoo, we’re excited to have strong partners by our side..”
Yahoo is owned by funds managed by Apollo affiliates.
With Apollo’s long-term support, alignment with shareholders and commitment to supporting both companies’ advertiser platforms, the partnership will accelerate Taboola and Yahoo’s growth plans in an attractive market segment. The deal represents Apollo’s strong belief in Taboola’s strategy and its future as a leading offering for advertisers, publishers and merchants on the Open Web.
Trade agreement details
Under the terms of this exclusive 30-year commercial agreement, Taboola will provide native solutions on all Yahoo Internet properties, generating more than 800 billion impressions. Under the agreement, Yahoo will receive 24.99% of Taboola’s total issued and outstanding shares on a combined post-transaction basis, with approximately 60% in standard common stock and 40% in new non-voting common stock. , as well as a representative on the Taboola Board of Directors.
The deal is expected to have a significant impact on Taboola’s revenue, adjusted EBITDA and free cash flow. The agreement should also have a strong impact on revenue and adjusted EBITDA per share.
The agreement, which has been approved by the boards of directors of both companies, is expected to close in the first quarter of 2023, subject to the receipt of customary shareholder and regulatory approvals, as well as certain closing conditions. fencing. Separately, Taboola today announced that it will hold an extraordinary general meeting of shareholders on December 30, 2022, with the aim of obtaining the required shareholder approval.
