The rumours are true! Recommendation platform Outbrain has officially agreed to acquire Teads, an omnichannel video platform, for $1 billion, of which $725 million will be paid upfront. The deal is expected to be close in the first quarter of 2025.
The acquisition will see Outbrain’s performance technology merged with Teads’ video and branding solutions to create a full-funnel omnichannel solution for advertisers. The combination promises to focus on “more tangible” outcomes – such as attention, deep engagement, and ecommerce conversions – rather than views and impressions.
“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.
“I’m incredibly proud of what our team at Outbrain has created, and strongly believe that with Teads we will build tremendous value for our customers, employees, and partners. I believe this combination and the transaction’s financial structure position Outbrain to deliver significant shareholder value in the years to come.”
According to the companies, the merging of their capabilities will provide a number of benefits for advertisers, including the creation of “one of the largest, direct supply paths” to premium media owners on the open web and connected TV; a suite of data capabilities from contextual, publisher environments, and advertiser performance signals; and the ability to create “innovative” ad experiences.
“This strategic combination presents vast new opportunities for the advertising industry at large,” said Bertrand Quesada, Co-Founder and Co-CEO of Teads. “We’ve built a world-class team at Teads that has focused on driving the best video and branding outcomes, and in the last several years have successfully brought those strengths to CTV.”
Teads Co-CEO Jeremy Arditi added: “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. Having known the Outbrain team for a decade, we know we’re creating an amazing combined company focused on innovation and excellence.”
