The merger between Tabula and Outbrain has exploded

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The merger of the Israeli content recommendation companies was supposed to create a huge company worth $ 2 billion. The reasons for the deal explosion, the covid-19 crisis and a desire to change its terms at the last minute has the largest merger in Israeli high-tech which was supposed to create a huge company worth $ 2 billio been canceled? New reports reveal that serious disagreements between the two largest content recommendation companies in the world, the Israeli companies Outbrain and Tabula, caused the deal to actually blow up and the issue of the merger to be dropped.

Under the original agreement, Adam Singolda's tabula was expected to hold 70% of the subsidiary's shares, whose value was expected to be about $ 2 billion. Outbrain shareholders were expected to receive the remaining 30%, and $ 250 million in cash. The subsidiary was expected to employ about 2,000 workers, although it is not inconceivable that if the merger had taken place, dual positions would have been eliminated and we would have witnessed streamlining measures in the various departments.

The merger between the two companies has been on the table for years, when often what thwarted the deal were differences in the culture of the companies as a source close to the issue told us in the past. However, only in October 2019 did the contacts mature for an initial summary of the merger . Now, TechCrunch reports , the deal exploded following a number of factors including the Covid-19 crisis, which caused a sharp cut in advertisers spending on advertising. And Tabula's desire to change the terms of the merger for the benefit of its shareholders following its alleged better performance during the crisis. Another factor that could have made the merger more difficult was regulatory approvals in the various markets in which the companies operate.

As a result, the initial agreement that expired was not extended and the deal actually exploded. Market conditions have changed in the wake of the Corona plague, a source close to the matter told Tecrunch. It has been a long road but separation is the right move.

The content recommendation technology developed by Tabula and Outbrain exposes users to additional content across the network with these recommendations based on browsing history, demographics and personal information regarding each user's content consumption habits. You are probably familiar with the maybe you will also be interested cubes,web spaces and other articles that may interest you of the companies that appear on many content sites including this site. Outbrain founded in 2006 by Yaron Galai and Uri Lahav, has raised $ 194 million since its inception. Tabula, founded by Adam Singolda a year later has since raised about $ 160 milliom