Taboola and Outbrain, the leaders in native advertising, have announced that they have entered into an agreement to merge, subject to customary closing conditions. Both companies’ Boards of Directors have approved the transaction.
The combined company will provide enhanced advertising efficacy and reach to marketers worldwide, while helping news organizations and other digital properties more effectively find growth in the years to come.
Upon closing, Adam Singolda, the Founder and current CEO of Taboola, will assume the CEO position of the combined company, which will operate under the Taboola brand name, with branding to be determined and to reflect the merger of the two companies.
Under the terms of the merger agreement Outbrain shareholders will receive shares representing 30% of the combined company plus $250 million of cash. The Board of Directors of the combined company will consist of current Taboola and Outbrain Management and Board members.
Eldad Maniv, President & COO of Taboola and David Kostman, co-CEO of Outbrain will work closely together on managing all aspects of the post-merger integration. Yaron Galai will remain committed to the success of the combined company, and actively assist with the transition for the 12 months following the closing.
The combined company will have over 2,000 employees across 23 offices, serving over 20,000 clients in more than 50 countries across the North America, Latin America, Europe, Middle East and Asia-Pacific regions.
Compelling Strategic and Financial Rationale for the Merger
Key strategic benefits of the merger include:
Increased Advertiser Choice
The combined company will be able to provide advertisers, from small businesses to global brands, with a meaningful competitive alternative to Google and Facebook—the companies currently known as the “Duopoly” that command the vast majority of digital ad spend.
Greater Advertising Efficiency
A unified and consolidated buying platform will provide advertisers with greater efficiencies, helping them reach their awareness, consideration and conversion goals.
Higher Revenue and User Engagement for Publishers
Through increased investment in technology and expanded reach, the combined platform will be able to increase revenue to publishers, mobile carriers and device manufacturers, and drive better user engagement.
Accelerated Innovation
By combining two of the strongest data science and AI teams in the industry, and by accelerating investment in R&D, the company will be able to better address the evolving needs of its partners and customers.
Better Consumer Experience
Increasingly, Taboola’s and Outbrain’s solutions are embraced directly by consumers to help them discover what’s interesting and new, at moments when they’re ready to explore. For example, Taboola News is now embedded in over 60 million Android devices worldwide.