Altice acquires Teads in €285MN deal | Ad Tech | News | Rapid TV News
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With the aim of owning the foremost online video advertising marketplace in the world, Altice has entered into an agreement to acquire the Teads online video advertising marketplace.

Teads 2 August 2016The acquisition puts Teads at an enterprise value of up to €285 million on a cash and debt-free basis, and the purchase price is subject to Teads achieving certain revenue targets in 2017. 75% of the acquisition purchase price will be due at closing. The remaining 25% earn-out is subject to Teads' 2017 revenue performance and will become payable in early 2018.

Teads announced record results for 2016, reporting 44% organic revenue growth year-over-year to an estimated €187.7 million. Its native video advertising solutions encompass a series of formats inserted deep into media content, like the inRead playing inside articles. With such technology, it claims to have created unprecedented levels of premium inventory.

Explaining the rationale for its move, the US operator believes that it can now grasp huge opportunities of a world with an audience of more than 1.2 billion unique visitors including 720 million via mobile. It says that the acquisition is highly complementary regarding the two firms’ respective strategic assets. The two have partnerships with over 500 premium publishers globally and 8,000 vertically specialised publishers and have R&D centre in Montpellier and New York with more than 100 engineers and programmers.

Altice also sees the acquisition a critical component for its global advertising strategy to provide clients with data-driven, audience-based advertising solutions on multiscreen platforms including TV, digital, mobile and tablets.

Commenting on the deal, Altice CEO Michel Combes, said: “Convergence of telecoms, content and advertising is at the core of our business. There is significant incremental value to be generated from our assets. Teads, a powerful business in itself, with major presence in Altice footprint notably in the US 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. It is that value proposition – data-driven, measurable and multiscreen – which will enable us to significantly grow our advertising business.”