- Daily Zen
The telecom giant Altice announced today that it has finalized the decision to acquire the video ad tech startup Teads. The value of the Altice Teads deal is worth $308 million. This isn’t the first time when an ad tech startup became a division of a telecom. Altice acquires Teads as the repositories of verified subscriber data can prove to be useful to advertisers as they can target certain segments of people through their online ads. It also gives an estimate about if these ads have served the purpose and provided effective outcomes or not.
Founded in 2011, Teads is a French ad tech company which claims to be the best video advertising marketplace across the globe. It has an audience of over 1.2 billion unique visitors out of which 720 million are through mobile. The company witnessed growth in terms of revenue in 2016 which increased by 44 percent to $202.6 million. It provides services to make video ads which pop up amidst the page content as the user scrolls through it. Whereas Altice is a Netherlands-based telecom company founded by Patrick Drahi in 2001. It provides a wide range of media and telecom services. It is mainly popular as the owner of SFR, which is one of the largest internet and wireless providers of France.
The founder and chairman of Teads, Pierre Chappaz confirmed the news of the Altice Teads deal in a statement. He said that the company is excited to become a part of the Altice team which is internationally renowned. He also added that the main motto of the startup is to offer its clients superior advertising solutions. These solutions rely on technological innovation along with measurable performance. The details of the deal suggest that Altice acquires Teads on a cash and debt-free basis. The Dutch telecom will pay 75 percent of the predetermined purchase price when the deal closes. The rest of the 25 percent will depend on the earnout clauses which both the companies refused to disclose.
This deal will supposedly close by the middle of this year. Altice acquires Teads as a part of its convergence strategy which will help it become a global provider of content, telecom, and advertising. The company hopes that through this business acquisition, it can grow its advertising platform. This will help it in monetizing its content businesses and telecoms access in a more efficient manner. Teads executive chairman Chappaz and CEO Bertrand Quesada will lead the business despite the acquisition. Chappaz will also join the management board of Altice.