Outbrain announced Wednesday that Yaron Galai, the founder of the online content-referral startup Outbrain, will begin sharing the job of CEO with veteran businessman David Kostman. The appointment of a co-CEO could attest to the shareholders' wish to lead the company for an IPO or a buyout, or to grow the company significantly in the face of the high competition in its segment.
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“Our plan isn’t to build two different companies but to manage together, each in his own area.” Galai told TheMarker. “David deals more with operations and I bring experience in product development.”
Kostman has been an active member of Outbrain’s board since 2014 and will remain a director.
In addition to his role at Outbrain, Kostman serves as chairman of publicly traded Nice Systems, as a director of privately held companies ironSource and TIVIT and is a co-founder of Nanoosh. Previously, Kostman served as CEO of Delta Galil USA and as chief operating officer of VerticalNet.
Outbrain was a pioneer in the field of content referral. There were expectations it would eventually become a $1 billion company, but it has faced with stiff competition from another Israeli startup, Taboola, that provides much the same service. Its problems have been compounded by the movement of web traffic from content sites, where its services appear, to Facebook and Google.