The Taboola.com Ltd (NASDAQ: TBLA) stock price soared 59.2% after signing a 30-year partnership with Yahoo to be the exclusive provider of native advertising across all of Yahoo’s digital properties.
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The partnership is expected to generate $1 billion in revenues for the companies by 2025. The move will also make Taboola available through Yahoo’s DSP, making it a leading native advertising provider for publishers, advertisers and merchants on the open web.
Investors cheered the partnership, as evidenced by the rally in Taboola shares. At the same time, we cannot quantify the announcement's impact on Yahoo.s market capitalisation since it is a private company owned by funds managed by Apollo.
The collaboration has been billed as an exciting strategic next step for Yahoo as it continues taking steps to reinvigorate its business and growth opportunities under new leadership and ownership.
Taboola will benefit immensely from the partnership since it will gain exclusive access to Yahoo’s 900 million monthly active users by powering the internet pioneer’s native advertising proposition in a world where consumers can choose not to have any cookies installed on their devices by advertisers.
The company intends to deliver better campaign performance, greater reach and improved user experience by supporting brands looking for alternative advertising outside walled gardens. In addition, Taboola promised to continue investing heavily in R&D to enhance how people discover new things they may like while strengthening its leadership in contextual advertising.
Adam Singolda, Taboola’s Founder and CEO, said: “Yahoo is an internet pioneer, representing one of the largest, most trusted and most sophisticated publishers in the world. Everywhere I look, I see a rocket ship growth opportunity for both of us – native, eCommerce, Video, header bidding (display) and more. This win-win partnership will meaningfully accelerate our growth flywheel, expanding our reach to more users on the open web with high-intent traffic to provide world-class solutions for advertisers, publishers, merchants and users in a cookie-less world.”
Taboola has given Yahoo 24.99% of its total issued and outstanding shares worth over $113 million as part of the deal, with 60% of the shares being ordinary shares, while 40% are new non-voting shares.
*This is not investment advice.
Taboola stock price.
Taboola stock price soared 59.24% to trade at $2.93, rising from Friday’s closing price of $1.84.