Content recommendation platform Outbrain will merge with Teads, a video monetisation specialist, in $1 billion deal
The merger, consisting of $725 million upfront cash and $25 million deferred cash, 35 million shares in Outbrain, and $105 million of convertible preferred equity, establishes one of the largest open internet advertising platforms.
Teads is owned by European telco Altice, which bought the business for $US307 million in 2017.
The new company will connect a combined 20,000 direct advertisers with 10,000 premium media properties and reach more than 2 billion consumers across 50+ markets.
“This is a transformative transaction to establish a true end-to-end, full-funnel platform for the open internet,” said David Kostman, CEO of Outbrain.
“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."
Kostman will serve as CEO of the combined company, with current Teads co-CEOs, Bertrand Quesada and Jeremy Arditi becoming co-presidents.
Outbrain chief operating officer Asaf Porat will be COO, leading the integration of the two companies.
Altice will appoint two board members (1 non-affiliated) in addition to Outbrain’s existing 8.
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