Yahoo Inc is making a big bet on digital media company Taboola.com Ltd (NASDAQ:TBLA) and its digital media properties via a 30-year commercial agreement.
The company is taking a 25% stake in Taboola and naming it Yahoo’s native advertising partner.
Taboola will exclusively power native advertising across all of Yahoo’s digital properties and will be available to buy through the Yahoo DSP, which will reach nearly 900 million monthly active users worldwide, according to a statement from Taboola.
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Taboola also has long-term partnerships with some of the top digital properties in the world, including CNBC, BBC, NBC News, Business Insider, The Independent and El Mundo.
Under the terms of the 30-year, exclusive commercial agreement, Taboola will power native advertising solutions on all of Yahoo’s internet properties, driving more than 800 billion impressions, the company said.
As part of the agreement, Yahoo will take a 25% stake in Taboola, with approximately 60% in standard ordinary shares and 40% in new non-voting ordinary shares, as well as one representative on Taboola’s board.
The deal is expected to close in the first quarter of 2023.
Shares of Taboola were up nearly 54% on Monday to trade at US$2.84 in early morning.
Yahoo is owned by Apollo Global Management (NYSE:APO).
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