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The
deal signals continued pain for media start-ups struggling to
grow revenue at a time when Big Tech giants Alphabet and Meta
Platforms attract the bulk of advertising sales.
In January, Artifact said in a blogpost it would wind down
operations of its app as "the market opportunity isn't big
enough to warrant continued investment in this way."
Yahoo, which also owns news brands TechCrunch, Engadget and
Yahoo Finance, said Artifact's AI-powered recommendation engine
and other features will help scale its news operations and
deliver personalized content to audience.
The online publisher also owns a minority stake in content
recommendation platform Taboola.
Yahoo, which declined to share financial details, was bought out
by private equity firm Apollo Global Management for $5 billion
in 2021.
Artifact was launched in early 2023 by Systrom and Mike Krieger.
They were earlier at Meta, then known as Facebook, after the
company's acquisition of Instagram in 2012.
The duo had left the Facebook owner in late 2018, which some
media reports later described as due to their strained
relationship with Meta boss Mark Zuckerberg and differences in
their visions for Instagram.
Systrom and Krieger will work with Yahoo in an advisory capacity
during this transition, Yahoo said in a statement.
(Reporting by Jaspreet Singh and Yuvraj Malik in Bengaluru;
Editing by Maju Samuel)
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