In a significant move within the advertising technology industry, Outbrain and Teads have announced their merger to establish a leading independent end-to-end advertising platform for the open internet.
Outbrain will acquire Teads in a $1 billion transaction. The deal comprises $725 million in upfront cash, $25 million in deferred cash, 35 million shares of Outbrain’s common stock, and $105 million in convertible preferred equity. This substantial investment underscores the strategic importance of the merger for both companies.
This merger aims to create one of the largest advertising platforms, offering a unique value proposition by enhancing outcomes across awareness, consideration, and performance objectives throughout the consumer journey, from connected TV (CTV) to web and mobile apps.
The merger will connect a combined 20,000 direct advertisers with 10,000 premium media properties, consisting of 80% direct supply. Together, the new entity will reach over 2 billion consumers across more than 50 markets worldwide. This vast network will provide advertisers with unparalleled reach and engagement opportunities, leveraging both companies’ strengths in content recommendation and video advertising.
Upon closing the transaction, David Kostman will serve as CEO of the combined company. The current Teads Co-CEOs, Bertrand Quesada and Jeremy Arditi, will take on the roles of co-Presidents. Asaf Porat will be appointed as Chief Operating Officer, tasked with overseeing the integration of the two companies. Additionally, Altice, a key stakeholder, will appoint two board members (one non-affiliated), expanding the board to a total of ten members.
This merger represents a significant shift in the advertising landscape, aiming to provide a comprehensive solution for advertisers looking to navigate the complexities of the open internet. By combining Outbrain’s expertise in content recommendation with Teads’ capabilities in video advertising, the new entity will offer a robust platform capable of delivering targeted and effective advertising campaigns across multiple channels.
The merger of Outbrain and Teads marks a pivotal moment in the advertising technology industry. The creation of a leading independent end-to-end advertising platform for the open Internet will provide advertisers with enhanced tools and resources to drive their marketing objectives. As the combined company moves forward, it is poised to play a crucial role in shaping the future of digital advertising.
