Altice is set to acquire online video advertising marketplace Teads as it looks to better monetise it subscriber base.
Founded in 2011, Teads helps advertisers to create native video adverts that are then monetised via programmatic buying, Teads’ sales team or the advertisers’ own sales force.
The start-up, which has around 500 staff, saw revenues grow 44 percent last year to around €188 million and has been “EBITDA positive” for the last four years.
Altice is paying €285 million for Teads, whose Executive Chairman Pierre Chappaz and CEO Bertrand Quesada will stay on to run the business.
The telco, which hopes to close the deal in the summer, said Teads had relationships with 94 of the world’s top 100 advertisers and over publishers.
It will add Teads to its existing advertising business, which has a turnover of around €700 million annually.
Altice Group saw sales increase 2.7 percent to €6.1 billion last year as its telecoms businesses in France and Portugal returned to growth in the fourth quarter.
Alongside telecoms and its emerging interests in advertising, Altice is pushing heavily into content.
It acquired a range of broadcast and publishing titles in France last year and launched two divisions to produce movies and TV channels.
Michel Combes, CEO of Altice, said: "Convergence of telecoms, content, and advertising is at the core of our business.
“There is significant incremental value to be generated from our assets.
“Teads, a powerful business in itself, with major presence in Altice footprint notably in the US and France, will enable us to offer a truly unique value proposition to brands and agencies on the one hand and the media industry, programmers and distributors on the other.
“It is that value proposition – data-driven, measurable and multiscreen – which will enable us to significantly grow our advertising business.”