Yahoo is teaming up with Taboola, a company that specializes in viral and social content, to reach audiences in new ways. The internet giant has purchased a 25% stake for $160 million. According to the press release, Yahoo will “leverage its global advertising distribution platform to help Taboola further scale its business.”
You can think of Taboola as the middleman that connects advertisers to media companies like Buzzfeed or Salon who are willing to advertise on their sites. In turn, Taboola garners the highest ad revenue share amongst Taboola’s publishers, a company spokesperson was quoted as saying. Yahoo will gain “unique access to that audience” through Taboola and that “positioning to meaningfully increase our e-commerce sales.”
Taboola gets its revenue from display ads, working with thousands of publishers like Yelp, CNN, and the Huffington Post. The entire publishing industry generates $25 billion in annual revenues. Taboola was founded in 2010 and today has almost 18 million active monthly users.
Yahoo has been making headlines lately, as it has been struggling to recover from last year’s massive data breach that impacted more than 1 billion user accounts. In March, Yahoo was sued by the Securities and Exchange Commission accusing it of misrepresenting its financial health by not disclosing the breach. In the US, it is now entering into a legal battle with the Federal Trade Commission over its failure to notify users quickly after the discovery of its 2013 data breach.
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