Taboola and Outbrain to Merge and Form New Digital Publisher Powerhouse

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Taboola has been announced to acquire fellow content distribution company Outbrain in a deal expected to create a new force for online publishers to compete with Facebook and Google likes.

The deal has yet to be fully accepted, but the published source claims that both companies have agreed to combine forces with Taboola by agreeing to pay Outbrain investors $250 million and will retain a 70% interest in the new business led by the founder of Taboola and CEO Adam Singolda.

The two Israeli firms, both established in 2007, operate services that link to partner publishers to drive traffic to content that is “appropriate.”

Taboola said the agreement would “provide enhanced marketing effectiveness and touch advertisers around the world” and help news organizations seek success more efficiently in the coming years.

“I’ve been admiring Outbrain and the creativity Yaron Galai, Ori Lahav and the rest of the Outbrain team brought to the marketplace over the past decade. In joining forces, we will be able to make Facebook and Google a more competitive rival, giving marketers a more meaningful choice, “said Taboola founder and chief executive Adam Singolda.

“We are passionate about driving our customers ‘ growth and promoting the open web that we see as vital in a world where walled gardens are powerful and perhaps too large,” continued Singolda; “Working together, we will continue to invest in better linking advertising dollars with local and national news outlets, improving journalism over the next decade. That’s why we merged; that’s our goal.

Yaron Galai, Outbrain’s co-founderand co-head, said the companies have a “shared mission and vision to promote worldwide quality journalism.”

“Together, I am sure that we will be able to continue our goal, which we call our Lighthouse, to provide users around the world with the best, most reliable content discovery capabilities,” Galai continued.

Although the branding may be refreshed to indicate the new offer, Singolda will remain chief executive.

The board of directors will be made up of current management and board members of Taboola and Outbrain. Singolda will remain the new company’s chief executive, while Galai will “actively support” the transition once the transaction is completed.

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