In a close $100 million deal, the start-up behind the publishing widget, Taboola has acquired an online video recommendation engine, ConvertMedia. Taboola’s CEO Adam Singolda said that the company serves 360 billion recommendations and one billion unique users with publishers like AOL (which owns us), Conde Nast, and the Daily Mail Group, among many others.
The company hopes that the acquisition would help Taboola reach 1 billion video views per day that would set its standards higher than its competitors. “If Taboola streams more than 1 billion videos daily, then Taboola becomes a significant source of video supply, which today is mostly Facebook, Snapchat and YouTube,” he said.
Based out of Isreal, ConvertMedia raised $50 million in annualised revenue prior to the deal.
Taboola was earlier conceived as a video recommendation service in 2007, now it’s recommendations include articles and other works of writing. The rapid growth of video services on Facebook and Youtube have kept users longer on these sites leading to lucrative adverising formats beyond the legacy display market.
The existing technological expertise of ConvertMedia will lead to publishers using more widgets along with videos as they already use while reading articles online.
Singolda added, “ConvertMedia also brings to Taboola a lot of relationships, he said, “eight years of business partnerships with TV buyers for syndication.”