Taboola and Outbrain to Merge to Topple Facebook and Google
In a press release published on October 3, two native advertising powerhouses Taboola and Outbrain announced their intention to merge.
Taboola and Outbrain were founded by Israelis in 2007 and 2006, respectively. Today, the audience of the two companies taken together accounts for about 2 billion users per month.
Don’t expect to see names like Taboolabrain or Outtab in the near future. The proposed entity will be headed by Taboola’s founder and CEO and will thus operate under the Taboola name.
The key objective of the newly formed company is crystal clear: to be a bigger contender to take on such giants as Facebook, Google, and Amazon. As far as ad formats are concerned, the consolidated company will continue to focus on native advertising. What’s more, the merged assets will also allow for growth into such areas as E-commerce and installs.
The merger might pose a serious threat to other native advertising networks such as Sharethrough, Triplelift, and Nativo that will find it difficult to procure the funds and resources needed to sustain competition.
The announced deal, however, will significantly expand the new Taboola’s potential. Instead of trying to outgrow and overtake its main competitor, the company will be able to focus on innovations and increase the number of its publishers and their profits after the merger.
The consolidation process involving the two adtech giants will take about a year, and so major changes are still yet to come.