Content discovery and referral firm Taboola announced last Friday that it was buying Connexity company for $ 800 million. The operation is to help Taboola extend its recommendations to new types of content and integrate new projects.
Founded in 2007, New York-headquartered Taboola is a marketing service for websites and apps looking to monetize their content. The company serves more than 13,000 publishers who reach over 500 million users per day. Taboola works with 1,600 advertisers such as Walmart or eBay and 6,000 publishers such as Condé Nast, DotDash, Hearst, and Vox Media.
Connexity operates a platform that allows publishers to integrate product offerings on their websites. The company also offers a host of other monetization tools, such as affiliate links, in-stream advertising, and buy search ads. The company had been owned by Symphony Technology Partners since 2011.
A successful merger
Taboola said that by coupling its technology with Connexity’s Selling Index, which includes more than 750 million product offerings, the company will be able to launch a new type of recommendation for advertisers and publishers, which links editorial content to product recommendations.
“The rise of social commerce demonstrates the value of commerce alongside content, and with Connexity, Taboola is poised to bring that value to the open web,” said Adam Singolda, CEO of Taboola. “E-commerce is the future of the open web, consumers will buy outside of Amazon, on publisher sites, alongside trusted editorial content, much more than they do today. Amazon has millions. merchants, but merchants mostly have Amazon. The combination of Taboola and Connexity technologies is a step forward in creating an alternative to closed e-commerce. ”
Taboola said Connexity generated $ 151 million in revenue, $ 63 million in profit, and $ 28 million in EBITDA in 2019. Last year, those numbers grew to $ 172 million in revenue, $ 78 million. in earnings and $ 38 million in EBITDA.
Bill Glass, Connexity CEO, and the Connexity leadership team will lead this newly formed business unit at Taboola.