Outbrain acquires Teads for $900 million to form digital advertising platform

On February 3, 2025, Outbrain Inc. (NASDAQ: OB) completed its acquisition of Teads in a transaction valued at approximately $900 million, according to regulatory filings. The merged entity, which will operate under the Teads brand name, combines two significant players in digital advertising technology.

The transaction structure includes $625 million in cash and 43.75 million shares of Outbrain common stock, valued at approximately $263 million based on Outbrain's closing price of $6.01 on January 31, 2025. According to financial documents, Goldman Sachs Bank USA, Jefferies Finance LLC, and Mizuho Bank, Ltd. have provided committed debt financing for the cash portion.

Financial data released by both companies indicates substantial market presence. The combined advertising spend reached approximately $1.7 billion in fiscal year 2024. Preliminary unaudited results show a combined Ex-TAC Gross Profit of $623 million and Adjusted EBITDA of $230 million in 2024, including projected synergies.

The technical infrastructure of the merged company presents significant scale. According to Comscore data from December 2024, the platform processes 4 billion signals each minute through artificial intelligence and machine learning systems. The company's technology stack includes 50 active AI models and analyzes 130,000 articles per minute.

In terms of operational leadership, David Kostman, previously Outbrain CEO, assumes the role of CEO for the combined entity. Jeremy Arditi and Bertrand Quesada, former Teads CEOs, will serve as Co-Presidents and Chief Business Officers for the Americas and International markets respectively.

The merger creates substantial technological capabilities in the digital advertising sector. According to internal company data, the platform processes 160 billion signals through AI systems, enabling targeting across different advertising contexts. The combined infrastructure scans 500,000 connected TV programs monthly for data enrichment.

Media reach statistics demonstrate the scale of the merged operation. According to Comscore measurements across multiple international markets, including the US, UK, Canada, and various European and Asian countries, the platform reaches 2.2 billion consumers monthly across mobile and connected TV worldwide. The company maintains direct relationships with 10,000 premium media owners.

The transaction includes governance provisions giving Altice, the selling shareholder of Teads, rights to nominate two directors to the ten-member board of Outbrain. These board members will operate under a stockholder agreement containing specific voting and share disposition restrictions.

Cost efficiencies form a significant component of the merger rationale. The company projects annual synergies of $65-75 million by fiscal year 2026, with approximately $60 million coming from cost reductions. Of these cost savings, $45 million relates to compensation expenses, with 70% expected to be implemented within the first month after closing.

According to Sital Banerjee, Global Head of Integrated Media, Performance Marketing, and BMI Management at Lipton Teas and Infusions, "The merger between Teads and Outbrain makes a lot of sense strategically. We look forward to exploring the new possibilities this provides us with to reach our audiences in a new and interesting way."

The technical capabilities of the combined platform include significant data processing capacity. Internal company metrics indicate the system makes one billion predictions each minute through its AI engine. The platform maintains connections to the top four OEMs and several major streaming applications, providing access to 50 billion monthly connected TV ad opportunities.

The transaction completion follows receipt of all necessary regulatory approvals and a shareholder vote supporting the acquisition on December 5, 2024. The company will maintain its headquarters in New York, operating with approximately 1,800 employees across 36 countries.