PARIS – Patrick Drahi’s conglom Altice, the parent company of Cablevision (now called Altice USA) and French telco SFR, is in the process of acquiring Teads, the leading online video advertising platform, which is valued at 285 million euros ($308 million).
Founded in 2011, Teads saw its revenue grow by 44% to an estimated 187.7 million Euros ($203 million) in 2016. It draws more than 1.2 billion unique visitors, including 720 million via mobile.
The acquisition of Teads is highly strategic for Altice, which has more than 50 million unique customers globally (nearly 60% of which are in the U.S. and France) and whose revenue from its international advertising business surpasses 700 million Euros ($757 million) per year.
“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,” said Michel Combes, CEO of Altice.
The acquisition will allow Altice to grow its global advertising platform, generate first-party data in France and in the U.S., as well as better monetize its telco and content business. Via Teads, Altice will provide clients with data-driven, audience-based advertising solutions on TV, digital, mobile and tablets.
Teads’ client list includes 94 of the top 100 advertisers worldwide and about 8,000 publishers specialized in mobile content. The company boasts R&D innovation centers in Montpellie, France, and in New York, with a workforce of 100 engineers and programmers.
“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,” stated Altice.
The acquisition of Teads is subject to approval by the anti-trust board and is expected to be greenlit within three months.