Outbrain, a leading technology platform in the digital advertising space, has made a significant move by announcing its acquisition of Teads, a global omnichannel video platform. This strategic combination aims to create a comprehensive end-to-end advertising solution for the open internet, bringing together Outbrain’s AI-driven performance technology with Teads‘ expertise in video and branding solutions. The merger of these two industry giants will offer advertisers a unified platform to access engaging consumer media experiences across various channels, from connected TV to online shopping.
The focus of the combined company will shift towards delivering tangible outcomes such as attention, deep engagement, and e-commerce conversions, rather than just views and impressions. This approach sets them apart from traditional platform players and positions them as a preferred partner for advertisers looking to drive meaningful brand outcomes in premium media environments. The goal is to provide a full-funnel solution that caters to the diverse needs of advertisers, from brand awareness to performance-driven campaigns.
David Kostman, CEO of Outbrain, expressed his excitement about the transformative potential of this transaction, stating that it will create significant value for customers, employees, and partners. The merger will leverage the strengths of both companies to offer a more comprehensive and innovative advertising solution that addresses the evolving needs of the industry. Teads‘ Co-Founders and Co-CEOs, Bertrand Quesada and Jeremy Arditi, also shared their enthusiasm for the partnership, highlighting the synergies between their omnichannel video expertise and Outbrain’s predictive performance solutions.
The acquisition of Teads by Outbrain reflects a broader trend in the advertising landscape towards creating a more integrated and efficient ecosystem for advertisers. By combining direct supply with direct demand and optimizing marketing results from discovery to purchase, the combined company aims to revolutionize the way brands engage with consumers on the open internet. This strategic move is expected to unlock new monetization opportunities for media owners and provide a competitive edge in the rapidly growing open internet advertising market.
The financial details of the acquisition include an estimated total consideration of approximately $1 billion, with an upfront payment of $725 million and a deferred cash payment of $25 million. Outbrain plans to finance the transaction through existing cash resources and committed debt financing from leading financial institutions. The company will also issue shares of common stock and convertible preferred equity to Altice as part of the deal structure, further strengthening its financial position for future growth and expansion.
The completion of the transaction is expected in the first quarter of 2025, subject to regulatory approvals and Outbrain stockholder approval. Goldman Sachs & Co. LLC. is acting as the lead financial advisor to Outbrain, with support from Jefferies LLC and Mizuho as financial advisors. Legal counsel is being provided by Meitar Law Offices and Bryan Cave Leighton Paisner to ensure a smooth and successful transition for both companies.
In conclusion, the acquisition of Teads by Outbrain marks a significant milestone in the digital advertising industry, creating a powerhouse that combines cutting-edge technology with deep expertise in video and branding solutions. The merger is poised to redefine the way advertisers engage with consumers on the open internet, offering a comprehensive and innovative platform for driving meaningful brand outcomes. With a focus on delivering tangible results and creating value for all stakeholders, the combined company is well-positioned to lead the industry into a new era of advertising excellence.