Outbrain Completes the Acquisition of Teads
by on 4th Feb 2025 in News
Outbrain Inc. today (February 4th, 2025) announced the closing of its acquisition of Teads, following receipt of all necessary regulatory approvals. The two companies will merge their respective branding and performance offerings to create the omnichannel outcomes platform for the open internet and will operate under the name Teads.
The new Teads will create one of the largest optimised supply paths on the premium open internet, with a focus on connecting curated, exclusive media environments with elevated, data-driven creative experiences. The combined company offering will be strengthened by Outbrain’s proprietary predictive technology and AI optimisation. It will provide a solution for marketers to leverage a single partner to deliver concrete outcomes at every step of the marketing funnel, offering unique ways to combine advertising solutions from awareness to sales. The company’s combined data set will power expanded contextual, audience, and purchase-based targeting capabilities, connecting CTV experiences to digital moments to drive measurable outcomes.
“I am extremely excited about this new chapter in our journey. This transformative merger creates a company that directly addresses a large gap in the advertising industry: a scaled end- to-end platform that can drive outcomes, from branding to consideration to purchase, across screens,” said CEO, David Kostman.
“The new Teads’ mission is to drive lasting value with an offering that invites marketers to expect better outcomes, media owners to expect sustainable value, and consumers to expect elevated experiences. I want to thank the teams of both Outbrain and Teads, who have pioneered major advertising categories, and have built leading global companies over more than a decade. It is their innovation and commitment that have brought us to this moment and will propel us to new heights,” added Kostman.
Co-president and chief business officer, Jeremy Arditi, added: “We’re committed to creating a solution that will harness the untapped opportunity of the open internet, and allow all of its constituents to thrive. We believe that by prioritising beautiful creative experiences, trust, and transparency in media, and delivery of meaningful outcomes, we can create a stronger ecosystem that provides value for all.”
"The merger between Teads and Outbrain makes a lot of sense strategically. We look forward to exploring the new possibilities this provides us with to reach our audiences in a new and interesting way, to deliver full funnel solutions and better business outcomes," said Sital Banerjee, global head of integrated media, performance marketing, and BMI management at Lipton Teas and Infusions.
Key Combined Strengths: With the completion of the combination, the new Teads will offer clients and partners:
- Exceptional reach at great scale, across exclusive environments
- Creatives built for outcomes
- AI-powered predictive technology
- Expansive omnichannel graph, expanded on the Teads Omnichannel Graph foundation
Transaction Details: Outbrain, Altice, and Teads have amended the previously announced share purchase agreement, dated August 1, 2024. Under the terms of the revised agreement, Outbrain will be paying a total consideration of approximately USD$900m (£725.3m), consisting of USD$625m (£503.3m) upfront cash and 43.75 million shares of common stock of Outbrain (valued at approximately USD$263m [£211.8m] based on the closing price of Outbrain’s common stock as of January 31, 2025, of USD$6.01 [£4.83]).
Under the revised terms, there is no deferred cash payment or convertible preferred equity component. The revised terms have meaningfully reduced the level of required debt financing and simplified the transaction structure.
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