Tuesday 26th January: Taboola to go public and you'll never guess what it's worth

January 26, 2021

Welcome to your Tuesday! And welcome to the world Emily Anna Thorpe 💛💛💛 This morning's newsletter is brought to you by Peter.

Everybody's favourite recommendation engine (no one has a favourite recommendation engine) is going public. Taboola is to merge with ION Acquisition Corp, a Special Purpose Acquisition Company that listed in 2020. The combined company will trade on the New York Stock Exchange under the ticker symbol TBLA.

The deal values Taboola at $2.6 billion, more than double the valuation placed on the business back in 2015, the last time it raised finance. You, like me, might be wondering how come this 'chum-box' business is valued at $2.6 billion?

Well, Taboola's content recommendation widgets appear on 9,000 websites around the world, displaying promotional content from more than 13,000 advertisers to over 500 million people a day. Revenues, at $63 million in 2015, grew to about $380 million last year and are projected to reach $516 million in 2022. It's all about the growth baby.

The UK Information Commissioner’s Office has warned that many media companies are breaking the law. The data watchdog has been concentrating on issues related to the pandemic since May. But now that its investigation into the UK’s £13bn online advertising industry has resumed, it has warned: “All organisations operating in the adtech space should be assessing how they use personal data as a matter of urgency."

Forecasts show podcast advertising revenues in the US rising 1,478% between 2015 and 2024. Growth like that means every major player is investing in the format, but it could be a while before the biggest investors make any real money. At $1 billion annually in the US, podcast advertising is still tiny compared with Internet ad-spend worth almost $160 billion.

Forbes magazine has withdrawn the offer of a month-long gloom-busting trip to Bermuda for the entrepreneurs that made it on to its '30 under 30’ list after a Guardian inquiry. Probably the right move given Bermuda's high-risk COVID status. Still, this story has us wondering what Esther could get for making it on to the PPA's 30 under 30 list?

This week's podcast:

This week we hear from Yahoo Lifestyle’s Editor in Chief for Southeast Asia Reta Lee. We talked about her career in media and her work at Yahoo Lifestyle, including spinning up new content pillars and identifying new trends. She also discusses the opportunity for eCommerce in Asia, collaborating with teams in the US and UK, and what opportunities she’s got her eye on over the next few years.

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