Yahoo announced on Tuesday its acquisition of Artifact, the AI-driven news platform co-founded by Instagram’s creators. The agreement will see Yahoo integrating Artifact’s innovative technology across its array of news and online services throughout the United States.
This acquisition reflects the ongoing challenges faced by media startups in generating revenue, particularly amidst the dominance of advertising sales by tech giants such as Alphabet and Meta Platforms.
In a blog post last January, Artifact acknowledged the limited market opportunity for its app, leading to the decision to wind down operations. Yahoo, the parent company of renowned news outlets like TechCrunch, Engadget, and Yahoo Finance, views Artifact’s AI-powered recommendation engine as a valuable addition to its news operations, promising enhanced scalability and personalized content delivery to its audience.
Additionally, Yahoo holds a minority stake in the content recommendation platform Taboola. Financial details of the acquisition were not disclosed by Yahoo, which was acquired by the private equity firm Apollo Global Management for $5 billion in 2021.
Artifact was established in early 2023 by Kevin Systrom and Mike Krieger, former executives at Meta (formerly Facebook) following its acquisition of Instagram in 2012. The departure of Systrom and Krieger from Meta in late 2018 was reportedly due to tensions with Meta’s CEO Mark Zuckerberg and divergent visions for Instagram’s future.
During the transition, Systrom and Krieger will serve in an advisory capacity for Yahoo, as stated by the company in a released statement.
The article originally appeared on Business Today.