- Outbrain is acquiring Teads for $1 billion to create a new independent, end-to-end advertising platform, according to a press release.
- The deal combines the performance focus of Outbrain with Teads’ specialty in digital video and connected TV (CTV). Outbrain CEO David Kostman will lead the combined company, with Teads Co-CEOs Bertrand Quesada and Jeremy Arditi acting as co-presidents.
- The new entity will cover over 50 markets and reach greater than 2 billion consumers per thirty days, making for considered one of the most important open-web advertising platforms. The acquisition comes as advertisers are looking for alternatives to digital advertising’s established duopoly.
Outbrain’s acquisition of Teads goals to address the push-pull many advertisers are currently experiencing in balancing brand constructing with performance marketing, all at a time when signal loss is on the rise. Outbrain, a content-recommendation firm known for promoting blogs and articles across the web, will cover the performance bases while Teads fills a necessity for more upper-funnel video and CTV know-how and ad inventory.
The $1 billion transaction, expected to close in Q1 2025, will create a new independent advertising platform with wide reach across the open web, CTV and mobile. The combined company wields 20,000 direct advertiser relationships and access to over 10,000 “premium media environments,” per the press release.
“This is a transformative transaction to establish a real end-to-end, full-funnel platform for the open web,” said Kostman in a press statement. “The combination of our highly-complementary offerings accelerates our vision to change into the popular partner to deliver meaningful brand outcomes across premium, quality media environments — while scaling the industry-leading offerings Teads is understood for.”
The potential introduction of one other scaled, full-funnel offering in digital comes because the open-web market is growing in value but mired in transparency and privacy challenges. The Outbrain-Teads news also comes as ad-tech M&A has been on the rise this 12 months.
Outbrain is purchasing Teads from embattled telecommunications provider Altice. The deal is being financed through a mixture of money, common stock and convertible preferred equity. Altice acquired Teads in 2017 but has been looking to sell the ad-tech unit for a while. Outbrain COO Asaf Porat is leading the combination and Altice will appoint two members to Outbrain’s board as a part of the method, considered one of them unaffiliated with its business.
Earlier reporting indicated Altice was looking for between 2 billion to 3 billion euros for Teads. Altice has spent the 12 months embroiled in a corruption scandal and is contending with a pile of debt.
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