Outbrain Is Going Public

Ad-tech company seeks $2 billion valuation in planned IPO

The company is seeking a public listing after its earlier attempted merger with Taboola was nixed.

Outbrain will pursue an initial public offering, with the company seeking a $2 billion valuation after the abandonment of its earlier attempted merger with rival Taboola.  

Top line

“The initial public offering is expected to take place after the SEC completes its review process, subject to market and other conditions,” reads a statement confirming the move.

Between the lines

Precise details of the listing’s timing and location remain unclear. The S-1 filing with the Securities and Exchange Commission was “confidentially submitted,” according to the company. It is working with investment banks Citi and Jefferies Group as part of the process.

Outbrain specializes in working with publishers to serve content recommendation ads on their web pages.

Israeli newspaper Haaretz earlier reported that Outbrain is seeking a $2 billion valuation via an IPO on revenues of $1 billion—a development which emerged just three months after its attempted merger with Taboola was jettisoned.

Bottom line

Outbrain’s IPO plans reflect a surge of public listings from companies in the ad-tech sector in the last 12 months. Many of them experienced a boost in revenue as the Covid-19 pandemic led to an unparalleled rise in digital media consumption.

Earlier this year, Taboola confirmed it is also seeking a public listing via a merger with a special acquisition company, or SPAC, with ION Acquisition Corp. The valuation of that listing is expected to be $2.6 billion.

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