Outbrain Acquires Teads, Forms Omnichannel Advertising Platform
Outbrain Inc. has completed its acquisition of Teads, with the combined entity to operate under the Teads name. The merger aims to create an omnichannel outcomes platform for the open internet, integrating branding and performance advertising.
NEW YORK – Outbrain Inc. (NASDAQ: OB) announced on February 3, 2025, the closure of its acquisition of Teads, following all necessary regulatory approvals. The merger combines the branding and performance offerings of both companies to establish an omnichannel outcomes platform for the open internet. The newly formed entity will operate under the Teads brand name.
The combined Teads entity aims to become one of the largest optimized supply paths within the premium open internet ecosystem. It will focus on connecting curated, exclusive media environments with advanced, data-driven advertising solutions. Outbrain's proprietary predictive technology and AI optimization are expected to enhance the combined company's offerings, enabling marketers to achieve tangible results across the entire marketing funnel, from awareness to sales.
The consolidated data set will facilitate expanded contextual, audience, and purchase-based targeting capabilities. It is designed to link connected TV (CTV) experiences with digital moments to drive measurable outcomes. The company reported that the combined advertising spend reached approximately $1.7 billion in 2024, with a reach of 2.2 billion consumers.
David Kostman, CEO of Outbrain, will lead the combined company as CEO. Jeremy Arditi and Bertrand Quesada, former co-CEOs of Teads, will assume roles as Co-President, Chief Business Officer for the Americas and International, respectively. The transaction is valued at approximately $900 million, comprising $625 million in cash and 43.75 million Outbrain shares. The company projects a combined Ex-TAC Gross Profit of $623 million and Adjusted EBITDA of $230 million for 2024, including estimated synergies of $65-75 million.