Taboola acquires Connexity for $800m
Global recommendations platform Taboola has acquired Connexity in a US $800m deal. The latter is one of the largest e-commerce platforms on the web, and its reach includes a network of 6,000 publishers and 1,600 direct merchant relationships. In a press statement, Taboola said that the move would unlock ‘new ways for publishers, advertisers and merchants to effectively scale outside of walled gardens.’
“The future of open web monetisation is e-commerce,” said Adam Singolda, CEO and Founder of Taboola. “At a time when – according to eMarketer – over 60% of US publishers are turning to e-commerce as a top revenue source, I believe every publisher is going to develop an e-commerce strategy.”
“With Taboola and Connexity, publishers will get instant access to an innovative technology connecting readers with products, which capitalises on where consumers spend a large part of their day–reading trusted news online. We’ve spent 14 years building relationships with the top publishers in the world, and now merchants can benefit from that massive scale, reaching buyers across the open web. With Taboola, e-commerce brands are no longer trapped within the walls of Amazon.”
e-Commerce brands will be able to leverage Taboola’s network of editorial content, by placing their products directly into publisher articles. Connexity’s platforms can be integrated directly into these pages, providing publishers with an instant and seamless way to generate new revenues.
Under the terms of the agreement, Taboola acquired Connexity for total consideration including purchase price and retention incentives of $800 million consisting of approximately $590 million in cash and $210 million in Taboola stock.
The company plans to hold a Connexity-focused analyst information session on 28th September 2021, to share additional information around the combined company’s strategy and financial expectations. That can be accessed via webcast here.
