<p>Yahoo Inc will acquire a nearly 25% stake in advertising tech firm Taboola Inc and become its largest shareholder, the companies said in a joint statement on Monday, in a push to deepen advertising on their digital properties.</p>.<p>As part of the partnership, Taboola will power native content and advertisements across Yahoo's sites for 30 years, while the US tech company will get one seat on Taboola's board.</p>.<p>Taboola's engine pushes links to articles paid by advertisers - known as native advertising - on sites of publishers including CNBC and NBC News.</p>.<p>The acquisition comes at a time when advertisers have downsized their budgets in response to macro-economic challenges, affecting businesses from media publishers to big tech platforms such as Alphabet Inc and Meta Platforms Inc.</p>.<p>Taboola, whose shares surged 25% in pre-market trade on Monday, expects the deal to boost its revenue, EBITDA and free cash flow.</p>.<p>The two companies estimated that the partnership will help generate $1 billion in annual revenue by 2025, but did not provide any further financial details.</p>.<p>The companies plan to seal the deal in the first quarter of 2023. Taboola said it will host a special general meeting on Dec. 30 to seek shareholders' approval.</p>.<p>The move is the boldest bet by Yahoo under its new owner. New York-based Verizon Communications Inc had sold the once-popular email service to Apollo Global Management in May 2021. </p>
<p>Yahoo Inc will acquire a nearly 25% stake in advertising tech firm Taboola Inc and become its largest shareholder, the companies said in a joint statement on Monday, in a push to deepen advertising on their digital properties.</p>.<p>As part of the partnership, Taboola will power native content and advertisements across Yahoo's sites for 30 years, while the US tech company will get one seat on Taboola's board.</p>.<p>Taboola's engine pushes links to articles paid by advertisers - known as native advertising - on sites of publishers including CNBC and NBC News.</p>.<p>The acquisition comes at a time when advertisers have downsized their budgets in response to macro-economic challenges, affecting businesses from media publishers to big tech platforms such as Alphabet Inc and Meta Platforms Inc.</p>.<p>Taboola, whose shares surged 25% in pre-market trade on Monday, expects the deal to boost its revenue, EBITDA and free cash flow.</p>.<p>The two companies estimated that the partnership will help generate $1 billion in annual revenue by 2025, but did not provide any further financial details.</p>.<p>The companies plan to seal the deal in the first quarter of 2023. Taboola said it will host a special general meeting on Dec. 30 to seek shareholders' approval.</p>.<p>The move is the boldest bet by Yahoo under its new owner. New York-based Verizon Communications Inc had sold the once-popular email service to Apollo Global Management in May 2021. </p>