Verizon isn’t the only telecom snatching up ad tech firms. Altice, the Netherlands-based multinational telecom company, has acquired the video ad player Teads. Teads, which has some 50 million fixed and mobile subscribers, the majority of whom are in the US and France, was valued at €285M (~$308M) “on a cash and debt free basis” by Altice, with the purchase price subject to it meeting certain revenue targets in 2017. Seventy-five percent of the purchase price will be due at closing, with the remaining quarter becoming payable in early 2018, if targets are met.
One of the key benefits Teads brings to the table is their so-called ‘outstream’ video ad format, which enables ads to be displayed outside of a video stream within any content on a webpage, thereby making it possible for publishers to house video ads without needing to produce their own video content to host the ad inventory. Another advantage is the new ability to link Altice’s “unique first party data-sets” (the personal data of the 50M subscribers to its broadband and mobile services) with Teads “relationships with 94 of the top 100 advertisers globally” and “partnerships with 500+ premium publishers globally and 8,000 vertically specialized publishers”.
The French Company, which claims its global online video advertising marketplace has more than 1.2BN unique visitors, including 720M via mobile, experienced 44% revenue growth in 2016 — an estimated €187.7M.
“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 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,” explained Michel Combes, CEO of Altice, in a press release. “It is that value proposition — data-driven, measurable and multiscreen — which will enable us to significantly grow our advertising business. We are very excited to partner with Pierre, Bertrand and their talented team.”
Pierre Chappaz, founder and executive chairman of Teads, added: “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.”
The two companies say they are expecting the acquisition to close in mid-2017, following competition reviews. Altice’s stock was trading up 1.45% following the announcement.