Taboola, an AI-powered content discovery platform, announced that Yahoo had acquired a 25% stake it has entered into a thirty-year commercial agreement with Yahoo which would result in Taboola becoming the exclusive native advertising partner across all of Yahoo’s digital properties.

As part of the agreement, Taboola’s ad inventory will be accessible via Yahoo’s demand-side ad platform (DSP) where it would gain access to 900 million monthly active users worldwide. Yahoo users would be able to leverage Taboola’s solutions to help deliver better campaign performance and improved user experiences. In addition, Yahoo will receive a 25% percent stake in Taboola making it the largest single shareholder. 

The agreement is expected to positively impact Taboola’s revenue and adjusted EBITDA and help it achieve its long-term objective of generating USD 1 billion in ex-TAC (net of acquisition cost) revenue by 2025. 

Analyst Quicktake: The partnership with Yahoo represents a key milestone in Taboola’s development and is expected to accelerate Taboola’s growth by providing it access to a wider user base (900 million monthly active users compared to its current 500 million daily active users). Taboola’s continuous product innovations such as SmartBid and its new ad bidding service launched in partnership with Microsoft may have helped it secure this partnership. This would also enable it to pull ahead of other large independent ad marketplaces such as Outbrain which have faced challenges such as the downsizing of its workforce ,