Publisher Adtech Startups Taboola And Outbrain Merge In $850M Deal To Bang Back Against Google And Facebook
The merger is creating a company that will be valued at $2 billion.
The Israeli-founded startups based in New York have a combined customer list of over 20,000 online properties and an audience of over 2.6 billion.
Taboola and Outbrain help publisher content reach a wider audience by placing their articles at the bottom of stories on other websites that also include adverts.
Their content appears on premium publishers such as CNBC, USA Today, Business Insider and Microsoft.
“By joining forces, we’ll be able to create a more robust competitor to Facebook and Google, giving advertisers a more meaningful choice,” said Adam Singolda, founder and CEO of Taboola.
“Working together, we will continue investing to better connect advertising dollars with local and national news organizations, strengthening journalism over the next decade.”
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Google, Facebook, and Amazon control almost 70 percent of total U.S. digital advertising revenue in 2019, according to eMarketer.
Taboola and Outbrain’s merger is yet to be approved by regulators and may take a while before it is finalized.
As part of the deal, Outbrain cofounder and co-CEO Yaron Galai and co-CEO Ori Lahav will stay on board in an advisory role during the integration, the companies said in a statement.