The Teads (Technology for Advertising) advertising solutions platform, whose parent company is based in Luxembourg City, and which specialises in online video advertising, is passing from the hands of Altice to those of the American company Outbrain, whose head office is in New York. Outbrain announced on Thursday that it had reached a definitive agreement for the acquisition. Ultimately, the two companies will merge with the ambition of creating an independent platform that will combine performance and omnichannel video offerings. The transaction is expected to close in the first quarter of 2025.
The strength of the future platform is that “differentiated by its ability to drive outcomes for awareness, consideration, and performance objectives--across CTV, web and mobile apps,” Outbrain in an announcement. “The combination of our highly-complementary offerings accelerates our vision to become the preferred partner to deliver meaningful brand outcomes across premium, quality media environments--while scaling the industry-leading offerings Teads is known for. I’m incredibly proud of what our team at Outbrain has created, and strongly believe that with Teads we will build tremendous value for our customers, employees, and partners,” said Outbrain CEO David Kostman. “I believe this combination and the transaction’s financial structure position Outbrain to deliver significant shareholder value in the years to come.”
Target: 2bn consumers per month
After the deal closes, the two companies will have around 20,000 advertisers. The new platform will cover more than 50 markets and aims to reach 2bn consumers a month. Outbrain said in its statement: “Once the combination is completed, the company will represent a break from established platform players that base their value primarily on views and impressions. In contrast, the combined company plans to focus on delivering more tangible outcomes such as attention, deep engagement, and e-commerce conversions--across the multitude of previously fragmented premium environments on the open internet, including connected TV.” This is a major opportunity, given that the open internet advertising market is currently estimated to be worth $175bn.
The merger also involves a number of changes. Kostman, Outbrain’s CEO, will become CEO of the new company. The co-CEOs of Teads, Bertrand Quesada and Jeremy Arditi, will become co-chairmen. The combined company is expected to generate more than $1.7bn by 2024.
Read the original French version of this report