In an announcement, digital content promotion platforms Taboola and Outbrain have entered into an agreement to merge into a single, unified company.
Together, the combined resources of these two companies have a good potential to expand advertising reach for media publishers and advertisers globally. There is even the potential of helping digital properties scale in years to come.
This new company will retain the Taboola namesake, with Taboola founder Adam Singolda as CEO. According to the agreement of the merger, Outbrain shareholders are going to receive 30% equity in the new company and a $250 million cash payout.
Combined, the companies say they’ll serve ads across 20,000 online properties, reaching an audience of 2.6 billion.
A fully consolidated Taboola platform will be able to provide a larger scale and resources that can better compete with much larger powers such as Facebook and Google.
The merged resources of the two companies could enable growth in ad serving capabilities, including e-commerce, AI, and video advertising.
Combined, the company will have more than 2,000 employees and approximately 20,000 customers.
Eldad Maniv, president & COO of Taboola, and David Kostman, co-CEO of Outbrain will work together on post-merger integration.