Yaron Galai and Ori Lahav Outbrain founders (Company PR pic)
Outbrain Inc., an Israeli startup that offers content recommendations to businesses, is set to acquire its American competitor Teads. Outbrain will acquire Teads in an approximately $1 billion transaction, consisting of $725 million upfront cash and $25 million deferred cash, 35 million shares of common stock of Outbrain, and $105 million of convertible preferred equity.
According to Outbrain, the combination will create one of the largest open internet advertising platforms, differentiated by its ability to drive outcomes for awareness, consideration, and performance objectives — across CTV, web and mobile apps.
The merger of Outbrain and Teads will create a global advertising powerhouse, combining 20,000 direct advertisers with 10,000+ premium media partners. This unprecedented alliance will form one of the largest, direct supply paths across the open internet and Connected TV (CTV).
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The combined platform is projected to reach over 2 billion consumers monthly across 50+ markets. This merger is expected to generate substantial financial returns, with combined Ex-TAC Gross Profit estimated at $660-$680 million and Adjusted EBITDA at $180-$190 million in 2024. Synergies are anticipated to boost Adjusted EBITDA by an additional $50-$60 million annually in the second year post-merger.
David Kostman, Outbrain’s CEO, will lead the combined company as CEO, while Teads’ Co-CEOs, Bertrand Quesada and Jeremy Arditi, will assume the roles of Co-Presidents.
Yaron Galai and Ori Lahav founded Outbrain in 2006 to solve the problem publishers had in replicating the print experience of turning a page to discover the next article or product on the web. Outbrain calls itself the leading recommendation platform for the open web. Its technology enables one-third of the world’s online consumers to discover new things through recommendation feeds on their favorite media and connects advertisers to these audiences to grow their business. Today, Outbrain develops the recommendation technology that makes the act of exploring and discovering new things on the open web possible.
“This is a transformative transaction to establish a true end-to-end, full-funnel platform for the open internet,” said David Kostman, CEO of Outbrain. “The combination of our highly-complementary offerings accelerates our vision to become the preferred partner to deliver meaningful brand outcomes across premium, quality media environments — while scaling the industry-leading offerings Teads is known for. I’m incredibly proud of what our team at Outbrain has created, and strongly believe that with Teads we will build tremendous value for our customers, employees, and partners. I believe this combination and the transaction’s financial structure position Outbrain to deliver significant shareholder value in the years to come.”
