Yahoo, Taboola Sign 30-Year Commercial Deal To Power Native Advertising

(RTTNews) - Internet company Yahoo, owned by funds managed by affiliates of Apollo, and Taboola (TBLA), which powers recommendations for the open web, announced Monday that they have entered into a 30-year, exclusive commercial agreement.

As per the deal, Taboola will power native advertising exclusively across Yahoo's digital properties reaching nearly 900 million monthly active users worldwide. Taboola said it will be available to buy through the Yahoo DSP.

The agreement is expected to be highly accretive to Taboola revenue, adjusted EBITDA and Free Cash Flow. The agreement is also expected to be highly accretive to Revenue and Adjusted EBITDA on a per-share basis.

Yahoo will receive 24.99 percent of Taboola's total shares on a combined post-transaction basis, with around 60 percent in standard ordinary shares and 40 percent in new non-voting ordinary shares.

One representative of Yahoo will join Taboola Board of Directors as single largest shareholder.

The agreement has been approved by the Boards of Directors of both companies. It is expected to close in the first quarter of 2023, subject to receipt of customary shareholder and regulatory approvals, as well as certain closing conditions.

Taboola will continue to invest heavily in R&D. The partnership is expected to generate approximately $1 billion in annual revenue with native advertising offering for advertisers, publishers and merchants on the open web.

Separately, Taboola announced a Special General Meeting of Shareholders to be held on December 30 for the purpose of seeking the required shareholder approval.