Why Yahoo will buy a slice of the ad-tech Taboola
Yahoo buys a 25% stake in Taboola, an ad-tech company that provides native advertising. Yahoo tries to strengthen its push towards digital advertising
Yahoo aims to grow in digital advertising with Taboola.
The US web company will acquire a nearly 25% stake in ad technology company Taboola. The companies announced this in a joint statement on Monday.
The deal is part of a 30-year exclusive advertising partnership that allows Yahoo to use Taboola's technology to operate its sizable business in native advertising, ads that have the characteristics of traditional news and entertainment content. Additionally, Yahoo advertisers will have the ability to sell their ads on Taboola network sites.
However, the acquisition comes as advertisers have slashed their budgets in response to macroeconomic challenges, affecting companies from media publishers to big tech platforms like Google and Meta, Reuters noted.
All the details.
THE OPERATION
The companies expect to seal the deal in the first quarter of 2023 but have not provided financial details of the deal.
Yahoo, which will become Taboola's largest shareholder, will also get a seat on the company's board of directors.
YAHOO'S STRATEGY WITH TABOOLA
The move is Yahoo's boldest gamble under its new owner.
In May 2021, Verizon announced the sale of Yahoo and other media assets of Verizon Communications to US private equity group Apollo Global Management for $5 billion. However, the second largest telephone operator in the US has maintained a 10% stake in the Yahoo company.
THE OBJECTIVES
Returning to the deal between Taboola and Yahoo, the two companies have estimated that the partnership will help generate $1 billion in annual revenue by 2025.
WHAT TABOOLA DOES
Taboola, founded in 2007, specializes in native advertising, i.e. boxes in websites with content recommendations from advertisers.
In the United States, the company operates an extensive advertising network on thousands of popular websites, including CNBC , NBC News and Insider .
Taboola's shares have fallen nearly 80% over the past year amid a broader slump in the advertising and public markets, giving it a $455 million market cap, the NYT recalls.
THE BATTLE IN DIGITAL ADVERTISING
Taboola and its rival, Outbrain, are in a multi-year battle to sign exclusive advertising deals with publishers. They once reached an agreement to merge, but canceled it in 2020 and each went public a year later.
THE AGREEMENTS IN ITALY
In Italy, Taboola has also already signed several agreements with various leading publishers, the Engage site recalled last year. In particular, it has entered into a multi-year partnership with RCS under which RCS MediaGroup uses the discovery platform on all its sites, including Corriere della Sera and La Gazzetta dello Sport .
Furthermore, it also has an agreement with Manzoni, thanks to which the platform is used on the sites of the GEDI Group (including Repubblica.it, La stampa.it, Deejay, MyMovies ) and the sites of the local newspapers GNN, also MSN, Huffington Post, Business Insider, Caffeina Magazine, Hearst , deabyday and over 100 verticals.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/perche-yahoo-comprera-una-fetta-dellad-tech-taboola/ on Mon, 28 Nov 2022 15:30:22 +0000.