News & Views
29/03/17 / news

Deconstructing: The Teads Acquisition by Altice

What Happened?

Another day, another adtech vendor consolidated into a giant telecom’s technology stack.

It has only been a month since Turn was acquired by Singaporean telco SingTel but on Tuesday, Altice, a Dutch telecom company, announced their acquisition of Teads, an online video advertising marketplace based in France.

The $308 million deal is set to close around the middle of the year with three quarters of the deal is set to be paid on completion of the deal with the remaining quarter payable in 2018 (dependent on Teads meeting the performance targets outlined by the deal).

About Altice

Altice provides a variety of media services and is probably best known for its ownerships of SFR, a French internet and wireless provider. In recent years, Altice has taken some noticeable steps toward expansion through the following acquisitions:

– US based Cablevision, cable TV ($17.7 billion)

– US based SuddenLink, high speed internet and cable TV ($9.1 billion)

– Audience Partners, data analytics capabilities (undisclosed)

The company’s recent expansion in the US cable and internet market have made them the fourth largest broadband provider in America.

What is the motivation?

In a reasonably short space of time, Teads has grown to become the world’s largest video advertising marketplace, generating $200m in revenue last year so there is an obvious attraction there. There is however the addition of a very attractive data asset to complement the 50 million unique fixed and mobile customers globally.

Both firms have seen an alignment of assets and vision with this deal because they both want to create a competitive marketplace large enough to rival that of Google and Facebook.

Michel Combes, CEO of Altice, said: “Convergence of telecoms, content, and advertising is at the core of our business… It is that value proposition – data-driven, measurable and multiscreen – which will enable us to significantly grow our advertising business.”

Planning on utilising their partnerships with Optimum, Suddenlink, Audience Partners and Drawbridge for their multiscreen, analytics and targeting capabilities, Teads Executive Chairman, Pierre Chappaz has explained that the reason “We decided to partner with them because they will help us considerably in building a true alternative to Google and Facebook, a global programmatic advertising marketplace capable of managing not only mobile or desktop but also addressable TV.”

What does this mean for the industry?

Telecom companies are becoming acquisitive in the advertising technology space as they look to build on their existing data assets and diversify revenue streams. But the most material trend is the continued consolidation in the AdTech market which shows no signs of letting up. For marketers, the increased consolidation can only be a good thing by creating a more seamless and interoperable tech stack, and more meaningful competition with the walled gardens.

Teads will benefit greatly from this deal. The former golden child of the industry will continue to operate as an independent division of Altice, and combine their relationships with 94 of the top 100 global advertisers, 500 premium publisher partnerships and 8,000 vertically specialized publishers with Altice’s expanding sports, news and entertainment content available over mobile and fixed-line subscribers.

This acquisition will also help Teads expand their product offering, increasing cross device accuracy and scale through integration with Altice’s advertising platform. Altice will also make its first-party data available to Teads in the U.S. and France, complementing the company’s current premium outstream video offering across desktop, mobile, and tablets, and possibly make a move in to OTT and VOD viable for the firm as well.

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