Could it be? Has the most talked about Israeli high-tech merger, since falafel and hummus were placed in a pita pocket, gone up in flames? According to new reports, the merger between Taboola and Outbrain, which would’ve created a $2 billion firm, has broken down, as both of the advertising-based content recommendation engines have ceased communications.

Dispute over terms and the looming global pandemic

Adam Singolda’s Taboola was originally supposed to hold 70% of shares from the proposed merger’s newly created firm, which was supposed to be valued at $2 billion. Outbrain’s shareholders were expected to get the remaining 30% along with $250 million in cash. Had the deal gone through, obviously, we would have witnessed reorganization of the newly founded content recommendation giant, which intended to create a team of 2,000 employees combined from both companies, meaning there would have been no place for dual roles in the company.

The merger between the two companies has been on the table for years, where each time the deal was blown up due to “differences in company culture”, as informed by a source close to the subject. Just in 2019, a deal between the two Israeli companies was heating up, even coming to an agreement on initial terms. However, now, TechCrunch reports that the deal hit the fan following a number of different reasons, among them the ongoing global COVID-19 pandemic, which has caused cutbacks in the monetization game; as well as Taboola wanting to change terms in favor of the company’s shareholders, after allegedly outperforming Outbrain over the course of the Coronavirus crisis. Another, wrench in the process would have been the regulatory approval of the different markets, where the two companies operate.

As a result, the initial agreement wasn’t extended and eventually expired, ending in the deal blowing up. “The market has changed due to the COVID-19 outbreak,” explained a source close to the deal to TechCrunch, who further added that “it was a long journey, but separating is the right move.”

Taboola and Outbrain’s advertising-based content recommendation technology exposes users to a variety of different web content, which are based on browsing history, demographic data, and personal information regarding user habits. You are probably already familiar with boxes at the bottom of articles that read “Recommended For You” or “Around the Web” that launch you deeper down the customized targeted content rabbit hole.

Outbrain was founded in 2006 by Yaron Galai and Ori Lahav, and has raised $194 million since it was established. Taboola, which was founded in 2007 by Adam Singolda, has raised $160 million to-date.

Over the past few years, we’ve witnessed how social media has taken center stage in our reality, influencing policy, and sometimes even dictating them. The social media power has embedded itself even more into our daily lifelines as the world goes in and out of lockdowns.

Movies like Netflix’s ‘The Social Dilemma’ further expose the amount of manipulating clickbait content that we perceive as various degrees of truth, the question then needs to be asked - is there a healthier alternative to the endless stream of mostly irrelevant content?

Forget mindless content, feed your need to read

Well, like with every tough problem, Israeli minds set to work to find a solution, or at least, bring us one step closer to one. Israeli startup Listory emerges from stealth mode with Seed funding but more importantly, the launch of its refined content social media app.

Listory aggregates and handpicks the most relevant stories, articles, podcasts, or videos that are based on your personal taste. The company states that its algorithms scan from a database of newsletters and curators in each field and refine the content before displaying it on the user’s personal feed, in addition to providing the user the control over specific content exposure. Moreover, the app uses the people you follow and your content consuming data to tailor your feed based on what truly interests you.

Imagine that generic mainstream social media is kind of like the drunk guy cracking beer cans on his forehead while edging you to “have another one”, while Listory’s refinery engine aims to be the clean-cut wine sommelier that guides you through your  quest of educated flavors that are recommended based on their pairing and most importantly, based on the diners personal taste. The refined content app even challenges its users to beat the algorithm by finding more relevant content; Listory will even pay $0.10 if users can prove them wrong.

”We’re excited and thankful for the investor support and user adoption and we’re eager to keep refining our content. That’s why we invite our users to challenge us, on a daily basis, to show that we truly believe in the content we present them with. Through this challenge, we’ll get to know our users even better, keep improving our platform, and most importantly, provide the best content experience for everyone," said Listory’s CEO Yaniv Gilad.  

In addition to the launch, Listory also announced a $4 million Seed round. The investment was led by Viola Ventures, Globis Capital, and Rhodium. The company was founded in March 2020 by Yaniv Gilad (CEO) and Yaron Galai (Active Chairman) after completing a management buyout from Outbrain, the world's leading discovery platform.

Yaron Galai, Outbrain Founder & CEO and Listory’s Chairman said: “Listory is measuring your delight and appreciation rather than attention and infinite scrolling. Unlike many other social feeds, Listory is an opinionated, mission driven app that is shaping new content consumption habits while helping you get smarter and happier”.