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Yahoo Buys 25% stake in Israel’s Taboola


Yahoo has acquired a 25% stake in Taboola, the publicly traded Israeli web content recommendation company. The two companies said that they have entered into a 30-year deal which Yahoo said will bring it $1 billion in revenue.

According to the new agreement, Taboola will exclusively power native advertising across all of Yahoo’s digital properties and will be available to buy through the Yahoo DSP. Taboola boasted that this will establish it as the leading native advertising offering for advertisers, publishers and merchants on the open web.

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Once upon a time, Yahoo was the biggest internet company. But the first firm to offer a web search engine fell out of contention quickly once Google began. That was because Yahoo only offered, in effect, a telephone book type listing of websites. But Google offered algorithm based tech that gave people much more efficient responses to their queries, and the rest is history. This is why today people say “Google” it and not “Yahoo” it.

As for Taboola, the firm has been having a tough time lately along with everybody else due to the worldwide financial crisis. In September Taboola was forced to make layoffs and let go of 6% of its workforce, or about 100 employees.

“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 cookie-less 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 $1 billion in ex-TAC* by 2025.”

Taboola powers recommendations for the open web, helping people discover things they may like. The company’s platform, powered by artificial intelligence, is used by digital properties, including websites, devices and mobile apps, to drive monetization and user engagement. Taboola has long-term partnerships with some of the top digital properties in the world, including CNBC, NBC News, Business Insider, The Independent and El Mundo. More than 13,000 advertisers use Taboola to reach over 500 million daily active users in a brand-safe environment. The company has offices in 18 cities worldwide, including New York and Tel Aviv.

Jim Lanzone, CEO of Yahoo, added that this partnership will allow 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,” he added, “we will maximize reach and campaign performance for advertisers, enhance monetization 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.”



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