Taboola’s deal to acquire Outbrain has been called off, the Wall Street Journal reports. Citing “people familiar with the matter” the WSJ reports that Taboola sought to renegotiate the terms of the deal – which would have seen Outbrain shareholders receive $250m in cash and 30 per cent of the combined company – a in light of COVID-19, but the two sides couldn’t come to a new agreement.
Taboola intended to fund the purchase with financing from banks including JPMorgan Chase & Co., Citigroup, and Israel-based Bank Leumi, but the financing agreement expired in late August and wasn’t extended.
Taboola and Outbrain pay publishers for the right to have a feed of third-party content featured at the bottom of news stories. Both personalize their recommendations based on users’ browsing history. They earn their money from the companies whose posts they promote.