Yahoo to acquire 25% stake in advertising tech firm Taboola Inc

29 Nov 2022 , 01:11 PM

Yahoo Inc said in a joint statement on Monday that it will acquire nearly 25% of advertising tech firm Taboola Inc and become its largest shareholder, as part of an effort to expand advertising on its digital properties.

Taboola will power native content and advertisements across Yahoo’s sites for the next 30 years as part of the agreement, and Yahoo will get one seat on Taboola’s board.

Taboola’s engine distributes links to articles paid for by advertisers, also known as native advertising, on the websites of publishers such as CNBC and NBC News.

The acquisition comes at a time when advertisers’ budgets have been reduced in response to macroeconomic challenges, affecting businesses ranging from media publishers to large technology platforms like Alphabet Inc and Meta Platforms Inc.

Taboola, whose stock rose 25% in pre-market trading on Monday, expects the transaction to increase revenue, EBITDA, and free cash flow.

The two companies estimate that the collaboration will generate $1 billion in annual revenue by 2025, but no other financial details were provided.

The companies intend to complete the transaction in the first quarter of 2023. Taboola announced a special general meeting on December 30 to seek shareholder approval.

For feedback and suggestions, write to us at [e-mail]