Advertising platform Outbrain, advised by three law firms, announced plans on Thursday to acquire global omnichannel video advertising platform Teads from telecommunications company Altice in a $1 billion deal. The acquisition is set to create a major player in the open internet advertising market.

Outbrain Acquires Teads : Deal Details

The purchase price for Teads includes $725 million in upfront cash and $25 million in deferred cash. Additionally, the deal comprises $105 million of convertible preferred equity and 35 million shares of Outbrain's common stock, according to a statement.

The new combined platform will integrate 20,000 direct advertisers with over 10,000 premium media environments. It aims to enhance outcomes for awareness, consideration, and performance objectives, according to the statement.

Outbrain Acquires Teads : Strategic Vision

"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," said Outbrain CEO Davis Kostman. "I believe this combination and the transaction's financial structure position Outbrain to deliver significant shareholder value in the years to come."

The merger will fuse Outbrain's artificial intelligence-driven performance technology with Teads' video and branding solutions, creating a comprehensive solution for advertisers.

Focus on Tangible Outcomes

Unlike standard advertising platforms that base their value on views and impressions, the combined company will focus on delivering tangible outcomes such as attention and e-commerce conversions.

The combined platform will operate in over 50 markets, reaching more than 2 billion monthly consumers.

Leadership and Future Plans

"By joining our expertise in omnichannel video with Outbrain's strengths in prediction and performance, we are poised to provide our customers and partners with more value than ever before," said Teads co-CEO Jeremy Arditi. "Having known the Outbrain team for a decade, we know we're creating an amazing combined company focused on innovation and excellence."

Post-acquisition, Kostman will serve as CEO of the merged entity, while current Teads co-CEOs Arditi and Bertrand Quesada will serve as co-presidents. Teads' current owner, Altice, will appoint two board members to Outbrain's existing board of eight members.

Outbrain Acquires Teads : Legal Counsel

Outbrain was advised by Meitar Law Offices, Bryan Cave Leighton Paisner LLP, and Cravath Swaine & Moore LLP. The Cravath team was led by partners Nicholas A. Dorsey and Joseph D. Zavaglia on financing matters, and partner Arvind Ravichandran on tax matters. The BCLP team included corporate transaction partners Jonathan Morris, Kenneth Henderson, Tim Hanson, and Lindsay Cross. The Meitar team included partners Dan Shamgar and Talya Gerstler.

Legal counsel information for Altice was not immediately available. A representative for Teads declined to disclose their legal counsel information.

Conclusion

The deal is expected to close in the first quarter of 2025, subject to customary closing conditions, including approval from Outbrain's shareholders. This acquisition marks a significant step towards creating a dominant force in the open internet advertising space.