Yahoo and Tabool have entered into a 30-year commercial agreement, developing a leading offering for advertisers, publishers and merchants on the open web; partnership to generate approximately $US1 billion in annual revenue
Taboola, a global leader in powering recommendations for the open web, and Yahoo (NASDAQ: TBLA) have entered into a 30-year, exclusive commercial agreement.
Taboola will exclusively power native ads across all of Yahoo’s digital platforms, and merchants, publishers, and advertisers may purchase them via the Yahoo DSP, making Taboola a leading native advertising service for the open web.
Through this partnership, Taboola will benefit from Yahoo’s scale as a leading consumer technology company with over 900 million monthly active users globally, covering mail, sports, finance, and news.
Taboola will also assist Yahoo deliver greater reach, better campaign outcomes, and improved user experiences by powering its native advertising platforms. As brands seek alternative advertising options outside of walled gardens, Taboola will help them achieve this goal.
Taboola will continue to invest heavily in R&D, enhancing how people discover things they may like, and strengthen its leadership in contextual advertising.
As part of the partnership, Yahoo will receive just under 25 percent of the pro forma equity of Taboola.
The partnership will allow Yahoo to further enhance its own unified advertiser offerings, enhance consumer experiences across Yahoo’s owned media properties, and participate in significant shared value creation as Taboola’s largest single shareholder.
Adam Singolda, Founder and CEO of Taboola says Yahoo is an internet pioneer, representing one of the largest, most trusted and most sophisticated publishers in the world.
“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 expand our reach to more users on the open web, providing world-class solutions for advertisers, publishers, merchants, and users in a cookie-less environment, accelerating our growth flywheel,” said Singolda
“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.” he said.
Jim Lanzone, CEO of Yahoo says partnering with Taboola enables Yahoo to further enhance the contextual and native offerings within our unified advertising stack.
“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,” says Lanzone
“Together with Taboola, we will maximize 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.” he said.
Yahoo is owned by funds managed by affiliates of Apollo. With long-term support from Apollo, alignment with shareholders and commitment to support the advertiser platforms of both companies, the partnership will accelerate both Taboola and Yahoo’s growth plans in an attractive sector of the market.
The agreement represents a strong belief by Apollo in Taboola’s go-forward strategy and future as a leading offering for advertisers, publishers and merchants on the open web.
Commercial Term & Conditions – Agreement Details
Taboola will provide native ad solutions on all of Yahoo’s internet properties, resulting in more than 800 billion impressions under the 30-year, exclusive commercial agreement.
Upon closing the agreement Yahoo will hold 24.99% of Taboola’s outstanding and issued shares, consisting of 60% of standard common shares and 40% of non-voting common shares. In addition, a Taboola Board member will be appointed.
The agreement is expected to be highly accretive to Taboola Revenue, Adjusted EBITDA and Free Cash Flow. The agreement is also expected to be highly accretive to Revenue and Adjusted EBITDA on a per-share basis.
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 receipt of customary shareholder and regulatory approvals, as well as certain closing conditions.
Separately, Taboola today announced a Special General Meeting of Shareholders to be held on December 30, 2022, for the purpose of seeking the required shareholder approval.
