Dutch Telecom Altice Acquiring Video Advertiser Teads for $308M
The Netherlands-based cable, fiber, and telecommunications company Altice announced today it will acquire Teads, which specializes in outstream video advertising, for $308 million. Outstream ads sit in the content page, rather than in existing pre- or mid-roll slots, and autoplay when they come into view. They're popular with publishers since they create new revenue opportunities.
Teads reaches an audience of over 1.2 billion unique visitors on desktops and mobile devices Altice notes. Factors that influenced its decision include Teads's relationship with 94 of the top 100 global advertisers, its partnerships with over 500 premium publishers and 8,000 vertically specialized publishers, and its digital publisher platform. In its New York City and Montpellier, France, offices, Teads has a staff of over 100 engineers and programmers. Altice was also swayed by Teads's first-party data sets, which have data for around 50 million fixed and mobile consumers around the world.
Altice has annual revenue of over $25 billion, and reaches 50 million households around the world.
In making the acquisition, Altice strengthens its plans for a global advertising strategy, one that combines data, a range of ad solutions, and multi-screen delivery.
"Convergence of telecoms, content, and advertising is at the core of our business," says Michel Combes, CEO of Altice. "Teads, a powerful business in itself, with major presence in Altice footprint notably in the U.S. and France, will enable us to offer a truly unique value proposition to brands and agencies on the one hand and the media industry, programmers, and distributors on the other."
The purchase price is contingent on Teads reaching 2017 revenue targets. Altice will pay 75 percent of the price at closing, with the final 25 percent as earn-outs dependent on 2017 revenue. The deal should close in mid-2017.
Altice previously purchased Cablevision Systems and took a majority stake in Suddenlink.
"Altice and Teads will marry the power of premium publishers with people-based targeting solutions to reach the right consumer, at the right time, on any of their devices, including TV," says Pierre Chappaz, executive chairman of Teads. Teads's executive leadership will stay in place.
The combined independent solution will let agencies and brands buy targeted ad placement across desktop, mobile and television.