Altice NV : Altice acquires Teads, the No. 1 online video advertising marketplace in the world
Altice acquires Teads, the No. 1 online video advertising marketplace in the
entered into an agreement to acquire Teads, the No. 1 online video advertising
marketplace in the world with an audience of more than 1.2 billion unique
visitors including 720 million via mobile.
Teads, founded in 2011, is the inventor of outstream video advertising and No.
1 video advertising marketplace in the world. Publishers work with Teads to
create brand new video inventory and manage their existing inventory, monetizing
it through their own sales force, Teads sales force, or programmatic buying.
Teads' native video advertising solutions encompass a series of formats inserted
deep into media content, like the inRead playing inside articles. It is changing
the game within the video advertising market by creating unprecedented levels of
premium inventory, which did not exist before.
Brands and agencies can access this top-tier, premium inventory, available on
the web and on mobile, through programmatic or managed services. Through its
managed services capabilities, the Teads team execute on their clients behalf
using its platform.
Teads revenue grew by 44% in 2016 to an estimated €187.7 million.
The acquisition combines the highly complementary strategic assets of Teads and
* Teads Relationships with 94 of the top 100 advertisers globally
* Partnership with 500+ premium publishers globally and 8,000 vertically
* Powerful digital publisher platform with leading global reach
* R&D innovation center (Montpellier,
than 100 engineers and programmers
* Highly entrepreneurial management team and powerful digital sales engine
* Strong standalone financial profile
* Unique first-party data sets with c.50 million unique fixed and mobile
customers globally (over 30 million of which are in the
* Market leading data analytics capabilities enhanced by recent
* Global and multi-local advertising sales organization
* Large international advertising business with revenue in excess of € 700
million per year
This acquisition is another critical component for Altice's global advertising
strategy. Altice will provide clients with data-driven, audience-based
advertising solutions on multiscreen platforms including TV, digital, mobile and
tablets. It will also provide an open and intelligent advertising platform to
the media industry, programmers and multichannel video programming distributors.
Together with sophisticated return on investment analysis capabilities,
leveraging multiscreen subscriber data information, this puts Altice in a unique
position to grow its global advertising platform and better monetize its core
telecommunications access and content business.
Importantly, the combination is expected to provide immediate commercial and
financial benefits to Altice's advertising business, in particular as it relates
making unique first-party data available to Teads in the US and
The acquisition values Teads at an enterprise value of up to €285 million on a
cash and debt free basis. Teads announced record results for 2016, reporting
44% organic revenue growth year over year. The company was EBITDA positive for
the fourth year in a row. Since Teads spends only a nominal amount on capital
expenditures, the acquisition is immediately accretive to Altice's operating
free cash flow before taking into account the expected synergies and strategic
benefits of the transaction.
The acquisition 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.
The senior management of Teads, including Executive Chairman
Chief Executive Officer
going forward and have agreed to reinvest a significant portion of their
all of its advertising activities.
The acquisition is subject to certain competition reviews and is expected to
close in mid-2017.
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
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. We are very
excited to partner with Pierre, Bertrand and their talented team."
to start this new phase of Teads and become part of the internationally renowned
Altice team. 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."
Press conference with Michel Combes and Pierre Chappaz
2:30 pm CET
14 rue St Fiacre, 75002 Paris
Chief Investor Relations Officer, Altice
Nick Brown: +41 79 720 15 03 / [email protected]
Chief Communications Officer, Altice
Arthur Dreyfuss: +41 79 946 49 31 / [email protected]
Founded by telecom entrepreneur, Patrick Drahi, Altice is a multinational cable,
fiber, telecommunications, contents, media and advertising company with presence
in four regions -
the French Caribbean, the
Altice provides very high speed based services (high quality pay television,
mobile telephony services to residential and corporate customers. Altice is also
active in the media space with a portfolio of channels (News, Sports, Lifestyle
etc.) as well as providing Premium content on nonlinear platforms; it also
produces its own original content (Series, Movies etc.).
Altice (ATC & ATCB) is listed on NYSE Amsterdam. For more information, visit
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