Taboola and Yahoo Trade Breach Accusations Over 30-Year Partnership Agreement

In depth

Taboola and Yahoo are in a business dispute over a 30-year partnership agreement signed four years ago. Under the agreement, Taboola gets access to advertising space on Yahoo's websites and digital properties, and Yahoo holds 15% of Taboola. The dispute was revealed in reports Taboola filed with the U.S. Securities and Exchange Commission.

Taboola updated in its quarterly report that both sides accuse each other of failing to meet their obligations. In notices filed by the parties, each claims the other party committed a "material breach" of certain obligations under the digital properties services agreement.

In the quarterly report, Taboola's revenues fell by 7%, and its annual forecast was cut. Taboola cited a decline in the number of ads readers see on each page view. The dispute with Yahoo is now in mediation, and 15% of the quarter's revenues were recorded against it.