Outbrain to acquire Teads for $1 billion

New Delhi: Outbrain will acquire Teads for $1 billion, comprising $725 million in upfront cash, $25 million in deferred cash, 35 million Outbrain shares, and $105 million in convertible preferred equity. Announced Thursday, this deal forms a major full-funnel platform for the open internet and connected TV (CTV).

Outbrain CEO David Kostman will lead the new company, with Teads co-CEOs Bertrand Quesada and Jeremy Arditi as co-presidents.

The merged entity will operate as Outbrain, offering a range of services from CTV to online shopping and aiming to provide tangible outcomes like engagement and ecommerce conversions. The combined company will work with 20,000 direct advertisers and over 10,000 premium media environments.

Outbrain projects $1.7 billion in ad spend for 2024 and has about 2,000 employees. Preliminary Q2 2024 results show Ex-TAC gross profit between $55 million and $57 million and adjusted EBITDA of at least $6 million. Final results will be disclosed on August 8, 2024, and may differ from these preliminary figures.