Yahoo announced on Monday (28) the purchase of almost 25% of Taboola, a global leader in the digital advertising market, becoming the company’s largest shareholder.
The acquisition is part of a 30-year deal that will give Taboola exclusivity to run ads on Yahoo’s sites, which have more than 900 million monthly active users.
The agreement marks a bet by the portal on the digital advertising market, at a time when technology companies, such as Google and Meta, which owns Facebook, are registering large losses with the slowdown in the sector.
The partnership is expected to generate annual profits of US$ 1 billion for the companies.
Following the acquisition, Yahoo will also gain a seat on Taboola’s board of directors.
Yahoo, which was bought by Apollo Global Management for $5 billion last year, says the partnership will accelerate growth for companies in an attractive sector of the market.
“The deal represents Apollo’s strong belief in Taboola’s forward strategy and future as a leading provider of services for advertisers, publishers and merchants across the web,” Yahoo said in a statement.
Taboola already says it expects an increase in revenue and operating gains after the deal. The advertising company’s shares rose nearly 70% after the deal was announced. This Tuesday (29), however, closed down 6.45%.
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