Content recommendation platform Outbrain is reportedly in advanced talks to merge with rival Taboola. This is the second round of merger discussions between the two companies, following talks that stalled late in 2015. Combining the two companies makes sense in many ways. Both were founded in 2006 and are now based in New York, and they provide very similar services: Each company caters to publishers and marketers with platforms that make personalized content recommendations—i.e., “other articles you might like.”
The deal would reportedly be worth around $1 billion, a relatively low number considering Outbrain was valued at $977 million in 2015 and Taboola was said to be worth $1 billion the same year. It appears that one or both of the companies are worth less than they used to be. Taboola has raised nearly $160 million from investors including Pitango Venture Capital and Comcast Ventures, while Outbrain has secured almost $200 million from backers including Carmel Ventures and Lightspeed Venture Partners.