Singapore – Outbrain Inc. has officially completed its acquisition of Teads, merging their branding and performance solutions to form an omnichannel outcomes platform for the open internet.
With the acquisition complete, the new omnichannel outcomes platform for the open internet will deliver results across all screens—CTV, mobile, and web—from branding to performance, operating under the name Teads.
The new Teads will offer one of the largest optimised supply paths on the open internet, focusing on connecting exclusive media environments with data-driven creative. The combined company will use Outbrain’s predictive technology and AI to help marketers achieve measurable results throughout the marketing funnel.
The merger creates one of the largest open internet companies, with a combined advertising spend of $1.7b (FY24) and a reach of 2.2b consumers. Headquartered in New York, the new Teads becomes one of the largest advertising platforms globally, partnering with over 10,000 publishers and 20,000 advertisers, and employing nearly 1,800 people across 36 countries.
Outbrain CEO David Kostman will lead the combined company, while former Teads CEOs Jeremy Arditi and Bertrand Quesada will take on the roles of co-president, chief business officer of the Americas, and chief business officer of International, respectively.
Speaking on the acquisition, CEO Kostman said, “I am extremely excited about this new chapter in our journey. This transformative merger creates a company that directly addresses a large gap in the advertising industry: a scaled end-to-end platform that can drive outcomes, from branding to consideration to purchase, across screens.”
“Together, we are creating an extraordinary new company, combining the best of both organisations’ deep expertise in omnichannel video branding solutions and performance advertising. The new Teads’ mission is to drive lasting value with an offering that invites marketers to expect better outcomes, media owners to expect sustainable value, and consumers to expect elevated experiences. I want to thank the teams of both Outbrain and Teads, who have pioneered major advertising categories and have built leading global companies over more than a decade. It is their innovation and commitment that have brought us to this moment and will propel us to new heights,” added Kostman.
Co-president & chief business officer Arditi also said, “We’re committed to creating a solution that will harness the untapped opportunity of the open internet and allow all of its constituents to thrive. We believe that by prioritising beautiful creative experiences, trust and transparency in media, and delivery of meaningful outcomes, we can create a stronger ecosystem that provides value for all.”
Outbrain, Altice, and Teads have revised their August 1, 2024, share purchase agreement. Outbrain will pay approximately $900m, consisting of $625m in cash and 43.75m shares of Outbrain common stock. The revised deal eliminates deferred cash payments and convertible preferred equity, reducing the need for debt financing and simplifying the structure.
Additionally, Outbrain will finance the transaction with existing cash and $625m in committed debt financing from Goldman Sachs, Jefferies Finance, and Mizuho Bank, subject to standard conditions. Altice will receive 43.75m shares and nominate two directors to Outbrain’s board, subject to a stockholder agreement with voting and share disposition restrictions.
“The merger between Teads and Outbrain makes a lot of sense strategically. We look forward to exploring the new possibilities this provides us with to reach our audiences in a new and interesting way, to deliver full funnel solutions, and to better business outcomes,” said Sital Banerjee, global head of integrated media, performance marketing, and BMI management at Lipton Teas and Infusions.
