Dutch group Altice has signed the purchase of Teads leading video advertising marketplace in the world with an audience of more than 1.2 billion unique users, 720 million of them through mobile devices.
Altice has agreed to pay for Teads € 285 million, but the price is subject to the Teads’ achievement of the revenue targets set for 2017. 75% of the price will be paid at the close of the transaction and the remaining 25% is subject to the achievement of the said objectives and will be paid in early 2018.
Teads posted €187.7 million in revenues last fiscal year 2016 with a 44% increase compared to 2015.
Teads management team, including its President, Pierre Chappaz and its CEO, Bertrand Quesada, will continue to lead the business and have agreed to reinvest a significant portion of its revenue from the sale. Pierre Chappaz will join the Board of Directors of Altice responsible for all the company’s advertising activities.
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.
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 France.
The acquisition is subject to approval by competition authorities, so the transaction is expected to close by mid-2017.
Data-based value proposition, measurable and operative in the US and France
Michel Combes, CEO of Altice, explains: “Convergence of telecoms, content, and 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 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.”
Prior to Teads acquisition, Altice’s international advertising business reported revenues at more than € 700 million per year to the company.
Founded by Entrepreneur Patrick Drahi, Altice is a multinational cable, fiber, telecommunications, content, media and advertising company with presence in four regions – Western Europe (including France, Portugal and Switzerland), United States, Israel and (Including the French Caribbean, Indian Ocean and Dominican Republic regions). Altice provides high-speed services (pay-TV, broadband Internet and fixed telephony) and, in some countries, mobile telephony services to households and businesses. Altice also operates in the media industry with a portfolio of channels (News, Sports, Lifestyle, etc.) as well as premium content services on non-linear platforms; Also produces original content (Series, Films, etc.).
The announcement of the acquisition of Teads by Altice comes after a busy month in the Dutch group as far as appointments and alliances are concerned.
Last 20th March Altice revealed the appointment of Bruno Zerbib as CTO (Chief Technology Officer). On March 8th, the company published its annual accounts for the 2016 fiscal year. In February 2017 the Dutch Group joined the shared network of clud services ngena.
94 of the top 100 advertisers in the world deal with Teads
founded in 2011, Teads is the inventor of outstream video advertising and the leading native video advertising marketplace.
Publishers work with Teads to create brand new outstream video inventory, monetizing it through programmatic buying, their own sales force, or third parties including Teads Demand.
Teads pioneers advertising experiences that respect the user, creating unprecedented levels of premium inventory which previously didn’t exist.
Brands, agencies and trading desks can access this top-tier, premium inventory, available on the web and on mobile, in the Teads Marketplace. Through its managed services capabilities, the Teads team execute on their client’s behalf using its platform.
Teads has a team of over 500 employees, 100 of which are in the innovation team, across 27 global offices.
Pierre Chappaz, founder and CEO of Teads, said: “We are excited 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.”
Teads native advertising video solutions encompass a range of formats that are embedded in editorial media content, such as the inRead video that plays between article paragraphs. Teads is making it possible to generate huge amounts of quality new advertising inventory for the broadcast of video campaigns.
As it happened in the case of Altice, March has also been a busy month forTeads in the field of corporate announcements. On March 15th Teads got allied with Immersion to launch TouchSense Ads in Latin America and Europe and on March 1 appointed Marc Zander, Global Director of Global Meida at Mars Chocolates, Senior Vice President of Customer Associations.
Image over the headline.- Bertrand Quesada (CEO of Teads) and Pierre Chappaz, Founder and CEO of Teads (right). © Xavier POPY / REA.
