Taboola and Outbrain called off their plan to merge — here’s what happened to the proposed $2 billion company

Hi! Welcome to the Insider Advertising daily for September 10. I’m Lauren Johnson, a senior advertising reporter at Business Insider. Subscribe here to get this newsletter in your inbox every weekday. Send me feedback or tips at [email protected].

Today’s news: What happened to the Taboola and Outbrain merger, Under Armour layoffs, and inside Spotify’s bet on podcasts.

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How Taboola and Outbrain’s plan to create a $2 billion clickbait company fell apart

• After announcing a deal to merge last year, the two biggest and longtime rivals content-recommendation companies, Taboola and Outbrain, are calling off the deal.
• But the deal was hampered by regulatory hurdles, the pandemic-induced economic downturn, and cultural differences that were laid bare by the downturn, reports Lucia Moses. Taboola also changed the terms of its offer, unwilling to pay the $250 million in cash it originally offered. 
• New competition in the space could also pose a threat to Outbrain and Taboola like Verizon Media and Connatix. Verizon Media recently won Fox News, a former Taboola client, over to its native ad product.

Read the full story here.

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Read the memo where Under Armour’s CEO lays out how the company is pivoting to a DTC model and laying off 600 in the process

• Sporting-goods giant Under Armour plans to lay off hundreds of its employees after a rough few months of sales, according to a memo obtained by Patrick Coffee.
• Under Armour reported a 40% drop in sales during the second quarter and said in April that it would furlough 6,600 employees at retail stores and distribution centers.
• An Under Armour employee with direct knowledge of the situation said this week’s layoffs included executives up to the VP level and followed months of delays.

Read the full story here.

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Spotify’s content boss explains her strategy to shake up the podcasting industry, from exclusive deals with the Obamas and Joe Rogan to ad-tech innovations

• Ashley Rodriguez profiled Dawn Ostroff, Spotify’s chief content and advertising business officer, who is driving the strategy behind Spotify’s expansion into podcasts.
• Spotify has inked deals with Barack and Michelle Obama, Joe Rogan, Kim Kardashian, and DC Comics. The company has also acquired podcast companies like Anchor, Gimlet, Parcast, and The Ringer.
• Spotify’s ad business grew 25% in 2019 with podcast advertising. During the second quarter of 2020, Spotify said ad revenue fell 21% year over year due to the coronavirus.

Read the full story here.

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More stories we’re reading:

• Two location-based marketing firms are combining to help marketers navigate the growing scrutiny over consumer tracking (Business Insider)
• ‘Mulan’ viewership data from connected TVs provide a snapshot of how much money it made in its first weekend on Disney Plus (Business Insider)
• The maker of Miller Lite and Coors Light are betting on non-alcoholic beverage growth with its release of probiotic seltzer and barley milk (Business Insider)
• 7 criteria TikTok’s algorithms look for and how brands can make sure their videos reach the widest audience possible (Business Insider)
• IAB names David Cohen as new CEO; Randall Rothenberg moves to exec chair role (AdExchanger)
• Sprinklr valued at $2.7 billion with Hellman & Friedman funding (Bloomberg)
• Vice Media selects a Facebook executive to lead Refinery29 (New York Times)

Thanks for reading and see you tomorrow! You can reach me in the meantime at [email protected] and subscribe to this daily email here.

— Lauren