Taboola.com Ltd (NASDAQ: TBLA) opened more than 70% up this morning after Yahoo announced an exclusive 30-year agreement with the advertising company.
What’s in it for Taboola.com Ltd?
On Monday, Yahoo said the Nasdaq-listed firm will power “native advertising” across all of its digital platforms moving forward.
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Taboola expects the partnership to be accretive to its revenue, EBITDA, and free cash flow. According to Adam Singolda – the Chief Executive of Taboola.com Ltd:
This win-win partnership will meaningfully accelerate our growth flywheel, expanding our reach to more users on the open web with high-intent traffic to provide world-class solutions in a cookie-less world.
The advertising technology company expects the agreement to help boost its revenue (ex-TAC) to $1.0 billion by 2025. It is also noteworthy that Wall Street continues to recommend buying Taboola shares and sees another 40% upside in it from here.
Yahoo to get 25% of outstanding Taboola shares
Under the terms of this agreement, Yahoo will also get a 25% stake in Taboola.com Ltd. Becoming its largest shareholder, Yahoo will have the right to name one director to its board as well. In a statement, Jim Lanzone – the Chief Executive of Yahoo said:
Together with Taboola, we’ll maximise reach and campaign performance for advertisers, enhance monetisation opportunities for publishers, and drive improved, privacy-forward experiences for users.
Taboola will seek approval from its shareholders on December 30th – following which, the deal will be finalised by March of 2023.
The announcement brought a much-needed relief for Taboola shares that are under immense pressure this year as advertisers continue to cut their budgets on fears of a looming recession.
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