Taboola.com Ltd (NASDAQ:TBLA) shares are trading higher Monday after the company announced it entered into a 30-year exclusive commercial agreement with Yahoo.
Under terms of the agreement, Taboola will exclusively power native advertising across all of Yahoo's digital properties. By powering Yahoo's advertising solutions, Taboola will help deliver greater reach, better campaign performance and improved user experiences.
Yahoo will receive 24.99% of Taboola's total issued and outstanding shares on a combined post-transaction basis, with approximately 60% in standard ordinary shares and 40% in new non-voting ordinary shares. Yahoo will also place one representative on the Taboola board of directors.
Taboola said the agreement is expected to be highly accretive to revenue and adjusted EBITDA on a per-share basis. It's expected to close in the first quarter of 2023.
Taboola powers recommendations for the open web, helping people discover things they may like.
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TBLA Price Action: Taboola has a 52-week high of $7.90 and a 52-week low of $1.52.
The stock was up 60.3% at $3.95 at time of publication, according to Benzinga Pro.
Photo: Lorenzo Cafaro from Pixabay.