Inside Yad2 as Blackstone leads talks toward a $1.2 billion deal
Internal figures reveal the scale of one of Israel’s most lucrative digital platforms as a deal nears completion.
The sale of the online classifieds site Yad2, valued at up to NIS 4 billion (approximately $1.23 billion), is entering its final stages. Calcalist has learned that the company’s CEO, Tomy Schoenfeld, held a meeting with employees this week, informing them that ownership is expected to change hands by early 2026. Four of the world’s largest foreign investment funds remain in the race to acquire Yad2, and Calcalist is now revealing the company’s financial data for the first time.
Documents obtained by Calcalist show that the company’s revenues have been growing at a compound annual growth rate (CAGR) of about 17%, with Yad2 expected to close 2025 with €73.1 million in revenue, a 17.1% increase from €62.4 million in 2024. The company projects €93.7 million in revenue for 2026, reflecting 28.2% growth compared to 2025.
Because the shekel, Yad2’s functional currency, has strengthened against the euro since the data were compiled, the company now expects to finish 2025 with €83 million in revenue and €37 million in adjusted EBITDA.
The company’s double-digit growth stems from an increase in platform activity, selling more ads, gaining more traffic, and converting more paying users. Marketing and R&D spending have also risen: marketing costs grew from €16.6 million in 2024 to an expected €19 million in 2025, while R&D expenses are projected to reach €16.6 million this year and €17.9 million in 2026.
Since revenue growth outpaces the combined increase in marketing and R&D spending, Yad2’s adjusted EBITDA, its operating cash flow, is growing at an annual rate of 21% between 2022 and 2026. In 2024, adjusted EBITDA reached €29 million, with a 46% margin. Yad2 expects €35 million in adjusted EBITDA for 2025 (47.9% margin, 20.6% growth) and €44.4 million by 2026 (47.4% margin, 26.8% growth). The company told investors that its performance was affected by the ongoing war in Israel, implying results could have been even stronger under normal conditions.
Yad2’s real estate division, publishing listings for buying, selling, and renting properties, accounts for 56% of its total revenue, followed by automotive (27%) and job listings on its subsidiary site Drushim (15%). Real estate is also the fastest-growing category, with annual revenue growth of 21%, compared to 13% in the automotive sector.
Within real estate, realtors and agencies contribute 50% of that segment’s revenue, developers add 36%, and private individuals just 6%. In the automotive division, small businesses and car dealers account for 64% of revenue, and corporate clients for 21%. In total, various types of realtors are responsible for roughly 45% of Yad2’s overall revenue.
The site attracts 4 million unique visitors per month, generating around 230 million total visits annually. However, about 90% of users do not pay, meaning they use only the free services. Around 590,000 new ads are posted every month.
Founded in 1998, Yad2 operates from Tel Aviv and is owned by the American investment firm KKR, which manages $686 billion in assets as of Q2 2025 and trades at a market capitalization of $122 billion, despite an 18% share decline since the start of the year.
KKR became Yad2’s sole owner in March 2025 after completing a corporate split with Axel Springer, its German media partner. Under the July 2024 separation agreement, Axel Springer’s CEO Mathias Döpfner and the Springer family retained control of the company’s traditional media business, while KKR assumed ownership of its digital and online assets, including Yad2 and other classified sites across Europe.
Axel Springer had acquired Yad2 from Walla, then owned by Shaul Elovitch, in 2014, for NIS 806 million. Now, KKR is seeking to sell the company for NIS 4 billion, up from its initial price tag of NIS 3 billion.
That valuation leap reflects both strategic moves and improved performance. After acquiring Yad2, the company purchased the Drushim IL job listings site and began selling anonymized data to advertising agencies, a nascent business that Yad2 views as a major future growth engine. Yad2 also offers market analysis services, ad creation tools, and premium listings, all of which have helped boost revenue. The global expansion of e-commerce has further supported the company’s growth.
As Calcalist reported earlier this week, the tender process for the sale is advancing quickly, and the deal could close by the end of the year. The sale is being managed by Barclays and Citi on behalf of KKR, with Blackstone, Francisco Partners, Apax, and Warburg Pincus currently competing. A fifth fund, CVC, is also preparing to submit a bid.
The process is believed to be led by Blackstone, the world’s largest alternative asset manager, headed by Stephen Schwarzman. Blackstone has a major presence in online classifieds through its stake in Adevinta, one of the world’s largest platforms in the sector, operating across ten countries. Blackstone co-owns Adevinta with the U.S. private equity firm Permira, which reportedly withdrew from the Yad2 race after acquiring a similar platform in the United Arab Emirates earlier this year.
Apax Partners also has significant experience in online classifieds. It controls Baltic Classifieds Group, which operates listings sites in the Baltic states and went public in London in 2021 at a valuation of £600 million. In 2019, Apax acquired Trade Me in New Zealand for $1.7 billion, and in 2021, it invested in Idealista, a leading real estate platform in Spain, Italy, and Portugal, at a €1.3 billion valuation. Apax is participating in the tender through its London headquarters, with the involvement of Zehavit Cohen, head of Apax Israel.
