Digital ad platforms are set to merge, creating what they claim is a 'credible competitor' to Facebook and Google.

Both companies’ boards have approved the deal which they hope will 'provide enhanced advertising efficacy and reach to marketers worldwide, while helping news organisations and others find growth'.  

According to eMarketer, almost 70 per cent of total U.S. digital advertising revenue in 2019 is controlled by Google, Facebook and Amazon.

Taboola founder and CEO, Adam Singolda, said the walled gardens have become "perhaps too strong" and the merger is designed to help support both an open web, and journalism - which the platforms have been of systematically undermining by producing little or nothing themselves, while syphoning off ad dollars.

Upon closing, Singolda will assume the CEO position of the combined company, which will operate under the Taboola brand name. New branding will reflect the merger of the two companies.

Outbrain shareholders will receive shares representing 30 per cent of the combined company plus $250 million cash.  

The combined company's board will consist of current Taboola and Outbrain management and board members.

Eldad Maniv, president & COO of Taboola and David Kostman, co-CEO of Outbrain will collaborate on managing all aspects of the post-merger integration. Outbrain co-founder and CEO Yaron Galai will actively assist with the transition for the 12 months following the closing.

The combined company will have over 2,000 employees across 23 offices with 20,000 clients across 50 countries.