Altice is expanding in the advertising market with the takeover of Teads, a provider of an online video advertising marketplace, for EUR 285 million. Teads is especially strong in Altice's two largest markets, the US and France, where it has innovation centres. Altice expects the takeover will help it develop better advertising to deliver to its fixed and mobile customers.
Founded in 2011, Teads helps publishers create, manage and sell their ad inventory. It claims to work with over 500 premium publishers globally and 8,000 vertically specialized publishers, as well as 94 of the top 100 advertisers globally. Teads generated revenues of EUR 187.7 million in 2016, up 44 percent, and was EBITDA positive for the fourth year in a row.
The deal gives Teads an enterprise value of EUR 285 million. Altice said it will pay 75 percent of the acquisition price at closing and the remaining 25 percent is subject to Teads achieving certain revenue targets in 2017.
The senior management of Teads, including Executive Chairman Pierre Chappaz and CEO Bertrand Quesada, will continue to lead the business going forward and have agreed to reinvest a significant portion of their proceeds. Chappaz will join Altice's management board, responsible for all of its advertising activities. Subject to regulatory approval, the takeover is expected to close in mid-2017.
