Posts tagged with "Alphabet’s Google"

Yahoo takes minority stake in digital ad network Taboola

November 29, 2022

Yahoo is deepening its push into digital advertising, even as its competitors warn that the market is faltering, reports The New York Times.

The Internet pioneer, which was taken private in a $5 billion deal last year, is taking a roughly 25% stake in Taboola, the company known for serving up attention-grabbing links on websites, the chief executives of the companies said in an interview.

The deal is part of a 30-year exclusive advertising partnership that allows Yahoo to use Taboola’s technology to manage its sizable business in native advertising—ads that have the characteristics of traditional news and entertainment content.

Shares of Taboola have fallen nearly 80% over the past year, amid broader doldrums in the public and advertising markets—giving it a market capitalization of $455 million. Last January, when Taboola struck a deal to merge with a special purpose acquisition company, or SPAC, it was valued at $2.6 billion.

Executives at companies like Meta and TikTok have warned that advertisers skittish about the economy have pulled back on their spending. But Jim Lanzone, the chief executive of Yahoo, said in an interview that the deal with Taboola puts both companies in a good position for when the ad market revives.

“I’m thinking, you know, five, ten, 30 years,” Lanzone said. “Digital advertising has huge wind at its back over the long term.” He added that while the company will continue to try to bring in money in other ways, such as expanding its subscription business or investing in e-commerce, “we have hundreds of millions of people consuming news and sports and finance on market-leading properties that are heavily monetized through advertising — and will continue to be.”

Yahoo, a giant of the early internet, was eclipsed over the years by tech rivals like Alphabet’s Google and Meta’s Facebook. The company endured a messy power struggle and shaky leadership as it matured, leading to layoffs and shifts in strategy.

The company was taken private by the investment firm Apollo Global Management in the hopes that new leadership and a respite from the public markets would give it a chance to grow. Yahoo says it has about 900 million monthly users of its properties, which include AOL, TechCrunch, and Yahoo Sports, making it one of the largest destinations on the web.

oola, founded in 2007, specializes in native advertising, operating a sprawling advertising network over thousands of well-known websites, including CNBC, NBC News, and Insider.

The deal with Yahoo gives Taboola the exclusive license to sell native ads across Yahoo’s sites, and the companies will share revenue from those ad sales. The companies did not disclose the terms of the revenue split.

Yahoo, which will become Taboola’s largest shareholder, also will get a seat on the company’s board.

Research contact: @nytimes

For young ‘influencers,’ Instagram is exploring a version of the app for kids under 13

March 22, 2021

In a move certain to generate controversy, Instagram is developing a version of its popular photo-sharing app for users 13 and under, MarketWatch reports.

BuzzFeed News first reported on the project on March 18, and it was later confirmed by an Instagram executive.

To date, Instagram’s policy has not allowed users under 13 on the site. Instagram is owned by Facebook, which also has a minimum age of 13. However, despite these restrictions, a number of children under 13 already have surreptitious accounts on both sites.

Citing postings from an internal message board at Instagram, BuzzFeed reported the new app would be developed by Head of Instagram Adam Mosseri and Pavni Diwanji, a Facebook executive who previously oversaw children-focused products, including YouTube Kids, while working at Alphabet’s Google.

In a tweet Thursday, posted after the BuzzFeed report was published, Mosseri said: “Kids are increasingly asking their parents if they can join apps that help them keep up with their friends. A version of Instagram where parents have control, like we did w/ Messenger Kids, is something we’re exploring. We’ll share more down the road.”

Messenger Kids is a Facebook app on which parents can control whom their choose to communicate with. However, a bug was found in 2019 that allowed kids to communicate with not just their friends, but with friends of friends—including adults—whom their own parents had not vetted.

In a message-board post, Instagram said its kids version would emphasize privacy and safety, according to the BuzzFeed report.

Separately, MarketWatch notes, on Wednesday. March 17, Instagram announced new features and resources for its teen users and their parents, in an effort to protect users from abuse, bullying, and predators.

“Protecting young people on Instagram is important to us,” the company said in a blog post. “We want parents to have the information to help their teens have a safe and positive experience on Instagram.”

If launched, the app could face legal issues regarding children’s privacy and targeted advertising—and would likely spark heavy criticism from youth advocates on issues including harassment, sexting and mental health.

One Twitter user replied to Mosseri’s tweet: “We don’t just give stuff to kids because they WANT it. We don’t give kids dangerous tools to play with when grownups haven’t figured out how to make those tools safe.”

Research contact: @MarketWatch