Taboola Buys Outbrain, Takes On Duopoly

Signaling broader industry consolidation, Taboola just agreed to buy its content-recommendation rival Outbrain for $250 million in cash in addition to 30% of the new company.

In a bold statement, Adam Singolda, founder-CEO of Taboola, said the deal positions the combined company to take on Facebook and Google.

In Singolda’s words, the merger means “giving advertisers a more meaningful choice,” so they aren’t forced to choose between a handful of hulking tech giants.

As it stands, nearly 70% of total U.S. digital ad revenue is controlled by Google, Facebook and Amazon, according to eMarketer.

Upon closing, Singolda is expected to assume the CEO position of the new company, which will operate under the Taboola name — although its branding is likely to reflect the merger of the two companies.

For at least 12 months following the closing, Yaron Galai, cofounder-CEO of Outbrain, is expected to remain with the company.

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Additionally, Eldad Maniv, president-COO of Taboola and David Kostman, co-CEO of Outbrain, are expected to help manage the post-merger integration.

The combined company will have more than 2,000 employees across 23 offices. Together, the companies currently claim more than 20,000 clients, including many of the industry’s top publishers.

In addition to more choice, Singolda said the deal should create additional ad efficiencies for publishers.

 

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