FX.co ★ Outbrain To Acquire Teads From Altice For Approx. $1 Bln; Stock Up

Outbrain Inc. (OB) announced on Thursday its plans to acquire the omnichannel video platform Teads from Altice USA, Inc. (ATUS) for around $1 billion. The deal is structured on a cash-free, debt-free basis, consisting of an upfront payment of $725 million and a deferred cash payment of $25 million.

This acquisition aims to integrate the technological expertise and product offerings of both companies, thereby creating one of the largest open Internet advertising platforms.

To finance the transaction, Outbrain will utilize its existing cash reserves along with $750 million in committed debt financing. Additionally, the company will issue 35 million shares of common stock, valued at approximately $169 million, plus $105 million in convertible preferred equity to Altice.

The transaction is anticipated to be finalized in the first quarter of 2025 and is expected to generate an adjusted EBITDA of $230-$250 million based on the combined 2024 estimates.

Currently, Outbrain's stock is experiencing an increase, rising 5.44% to $5.04 on the Nasdaq.