Taboola and Yahoo Enter Mediation Amid 30-Year Partnership Dispute
Taboola and Yahoo have entered mediation following mutual accusations of contractual breaches in their 30-year advertising partnership, amid financial pressures and declining shares for the Israeli ad-tech firm.
A legal dispute has emerged between Taboola and Yahoo, with both companies accusing each other of contractual breaches under their 30-year advertising partnership. The conflict, disclosed in Taboola's recent quarterly report to the US Securities and Exchange Commission (SEC), has moved to mediation after both firms filed notices alleging material breaches of obligations under the Digital Property Services Agreement.
Taboola did not disclose specific clauses at the center of the dispute, the demands of either party, or whether the conflict threatens the partnership's future. The company stated its intention to pursue all available rights and remedies under the agreement, while Yahoo has not publicly detailed its claims. The partnership, signed in November 2022, made Taboola the exclusive native advertising provider across Yahoo digital properties, including news, finance, and sports, while also making Yahoo a major shareholder with roughly 39.5 million common shares and 45.2 million non-voting shares valued at $288 million.
In the third quarter of 2026, Taboola recorded $68.2 million in Yahoo-related revenue, accounting for 14.8% of total revenue, compared to $52.1 million, or 10.5%, in the same period last year. For the first nine months of the year, Yahoo-related revenue reached $217.2 million, or 15.5% of total revenue. The contract dispute coincides with mounting market pressure on Taboola, whose shares have dropped about 53% since the beginning of the year, closing recently at $2.15 with a market capitalization of roughly $570 million following lower-than-expected quarterly results and guidance.
