The combined entity will compete against online advertising giants like Google and Facebook.
Publisher adtech startups Taboola and Outbrain announced that the two rival companies will form a single company, which will still be called Taboola. Taboola’s founder Adam Singolda will be the CEO of the new company, which is valued at an estimated $2 billion.
The merger aims to bulk up the existing 20,000 online properties that the two companies have to compete better against the likes of Facebook and Google. The combined group would be working with major publishers including The Guardian, BBC and Microsoft.
The combined audience scale of the two companies is expected to help publishers continue making ad revenues on their sites “and off the network of companies like Google, Facebook and Amazon.” The three tech-giants’ currently account for around 70% of online ad revenues.
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