Outbrain, a content-recommendation firm, has announced its acquisition of Teads for $1 billion in a move to create a new independent, end-to-end advertising platform. This strategic decision aims to address the current challenges faced by advertisers in balancing brand building with performance marketing, especially at a time when signal loss is becoming more prevalent in the digital advertising landscape.
The deal brings together Outbrain’s expertise in performance-focused advertising with Teads‘ specialization in digital video and connected TV (CTV) advertising. Outbrain CEO David Kostman will lead the combined company, with Teads Co-CEOs Bertrand Quesada and Jeremy Arditi serving as co-presidents. This collaboration will enable the new entity to cover over 50 markets and reach more than 2 billion consumers per month, positioning it as one of the largest open-web advertising platforms in the industry.
The acquisition of Teads by Outbrain is significant as it fills a crucial gap in the market for advertisers seeking alternatives to the established duopoly in digital advertising. By combining Outbrain’s performance capabilities with Teads‘ video and CTV expertise, the new platform will offer advertisers a comprehensive solution for reaching consumers across various channels and devices.
The $1 billion transaction is expected to close in Q1 2025 and will create a full-funnel advertising platform with broad reach across the open web, CTV, and mobile. With 20,000 direct advertiser relationships and access to over 10,000 premium media environments, the combined company is well-positioned to deliver meaningful brand outcomes for advertisers.
Outbrain CEO David Kostman expressed his excitement about the acquisition, stating that it will establish a true end-to-end platform for the open internet. He emphasized the complementary nature of Outbrain and Teads‘ offerings, highlighting their shared vision to become the preferred partner for delivering brand outcomes across premium media environments.
The Outbrain-Teads deal comes at a time when the open-web market is growing in value but facing challenges related to transparency and privacy. The consolidation of Outbrain and Teads‘ capabilities into a single platform could provide advertisers with a more streamlined and effective solution for navigating these challenges and reaching their target audiences.
Overall, the acquisition of Teads by Outbrain represents a significant development in the digital advertising landscape. By combining their respective strengths, the two companies are poised to create a powerful advertising platform that offers advertisers a comprehensive solution for reaching consumers across multiple channels and devices.