Altice N.V., the European telecom company and parent of U.S. cable company Altice USA, said it has purchased online video advertising pioneer Teads, in a deal that values the firm at about $308 million.
Teads, based in France, is the inventor of outstream advertising – which allows video ads to be displayed within the content of a web page – and creates new video inventory for publishers and manages their existing inventory, monetizing it through the publishers’ sales force, its own sales force or programmatic buying. The company grew revenue last year by 44% to $203 million.
Altice said the acquisition adds another component to its global advertising strategy, which is to provide clients with data-driven, audience-based solution on multiple platforms.
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Altice said the purchase price is contingent on Teads reaching certain revenue targets and the deal is expected to close by mid-year.
“Convergence of telecoms, content, and advertising is at the core of our business,” Altice N.V. CEO Michel Combes said in a statement. “There is a significant incremental value to be generated from our assets. Teads, a powerful business in itself, with a major 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. It is that value proposition – data-driven, measurable and multiscreen – which will enable us to significantly grow our advertising business.”
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Teads senior management, including executive chairman Pierre Chappaz and CEO Bertrand Quesada, will continue to lead the business going forward and have agreed to reinvest a significant portion of their proceeds into the business. Chappaz will join Altice N.V.’s management board responsible for all of its advertising activities.
“We are excited to start this new phase of Teads and become part of the internationally renowned Altice team,” Chappaz said in a statement. “Since our inception we have strived to offer our clients with superior advertising solutions based on measurable performance and technological innovation. As part of Altice, we will be able to offer even more tailored, data-driven solutions and take our value proposition from the digital world to a multiscreen platform, which includes TV, digital, mobile and tablets. It is this differentiated offering which will allow Altice and Teads to uniquely prosper in the global advertising market.”