Digital content promotion platforms Taboola and Outbrain announced that they have entered into an agreement to merge into a single, unified company Thursday.

The combined resources of both companies have the potential to expand advertising reach for media publishers and advertisers globally, with the potential of helping digital properties scale in years to come.

The consolidated company will retain Taboola’s namesake, with Taboola founder Adam Singolda serving as CEO. According to the agreement, Outbrain shareholders will receive 30% equity in the new company and a $250 million cash payout.

Combined, the companies say they’ll serve ads across 20,000 online properties, reaching an audience of 2.6 billion.

Why we should care

For Taboola and Outbrain stakeholders, the merger has been a long time in the making given the comparative capabilities and customer bases of the two platforms. A newly consolidated Taboola platform could provide the scale and resources to better compete with the dominating powers of Google and Facebook.

The merged resources of the two companies could enable growth in ad serving capabilities, including e-commerce, AI, and video advertising.

More on the news

  • Both companies are known for providing content recommendations in the form of text or image-based ads, using algorithms that aim to predict reader preferences.
  • Taboola said it is on track to hit $1 billion in revenue by the end of the year, while Outbrain declined to share financials.
  • Combined, the company will have more than 2,000 employees and approximately 20,000 customers.
  • Eldad Maniv, president & COO of Taboola, and David Kostman, co-CEO of Outbrain will work together on post-merger integration.

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