Telco Altice to acquire video ad tech player Teads for $308 M

Another telco is buyingan adtech firm todayits been confirmed that video ad player Teadsis being acquired by Dutch telecom Altice, which has some 50 million fixed and mobile subscribers, the majority of whom are in the U.S. and France. Teads claims its global online video advertising marketplace has more than 1.2 billion unique visitors, including 720 million via mobile.

Teadsis beingvalued at 285 million (~$ 308 million) on a money and debt free basis by Altice, with thepurchase price subject to it fulfilling certain revenue targets in 2017. Seventy-five percent of the buy price will be due at closing with the remaining quarter becoming payable in early 2018, should targets be met.

The pair say they are expecting the acquisition to close in mid-2 017, following competitor reviews.

Teads offersso-called outstream video ad format enabling ads to be displayed outside of a video stream, such as within any content on a webpage, thereby enablingpublishers to house video ads without needing toproduce their own video content tohostthe ad inventory. Its revenue grew by 44 percent in 2016 to an estimated 187.7 million.

The French companywas founded back in 2011, and despite previously talking up the prospectof an IPO, Teads hasremained private, while constructing some acquisitions of its own .~ ATAGENDIt alsomerged with another adtech firm, Ebuzzing, in 2014.

As noted above, theres a growing trend of telcos running shopping foradtech firms not least TechCrunchs parent company AOLs parent Verizon, which is alsoin the process of closing in on Yahoos adtech.

Altice and Teads saythe acquisition rationale is the strategic combining of their assets citing, for example, the advantage of being able to link Altices unique first party data-sets( aka the personal data of the 50 million subscribers to its broadband and mobile services) withTeads relationships with9 4 of the top 100 advertisers globally and partnerships with 500+ premium publishers globally and 8,000 vertically specialized publishers.

In simpler words, this is about telcos monetizing knowledge of their vast user-bases byfinding ways to benefit from serving them targeted premium advertising and in the U.S. now encouragedby President Trumps new FCC chairperson picking, Ajit Pai, who is a fan of very-light-touchregulation( versus the prior FCC chairmen intentto expand broadband privacy rules ).

Commenting in a statement, Michel Combes, CEO of Altice, said: 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. 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.

While Pierre Chappaz, founder and executive chairman of Teads, added: Since our inception we have strived to offer our clients with superior advertising answers based on measurable performance and technological innovation. As part of Altice, we will be able to offer even more tailored, data-driven answers and take our value proposition from the digital world to a multiscreen platform, which includes Tv, digital, mobile and tablets.

Altices stock was trading up 1.45 percent following the announcement.

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