Dive Brief:
- In an all-stock transaction, internet traffic measurement firm ComScore acquired rival Rentrak and its set-top box data to track TV viewing.
- The newly combined firm is expected become a competitor for Nielsen, the long-time leader in TV audience measurement in the U.S.
- The deal will turn each share of Rentrak into 1.15 shares of ComScore, giving Rentrak a valuation of $732 million.
Dive Insight:
Nielsen’s spot as a leading audience measurement firm in the U.S. may come under a little pressure after ComScore acquired rival company Rentrak. The deal combines two different sets of audience measurement specialties as ComScore is known for tracking internet traffic and Rentrak uses set-top box data to measure TV viewing. By combining these capabilities, the new company should be able to track audiences across TV, the internet, and on mobile devices.
ComScore’s CEO Serge Matta will remain atop the new company while Rentrak’s CEO, Bill Livek, will become the executive vice chairman and president. Over the past year, ad agency WPP bought minority stakes in both ComScore and Rentrak and had previously expressed a desire to see the companies join forces.
Even though Nielsen remains the standard for audience measurement, the combination of ComScore and Rentrak could be entering a favorable marketplace because a number of media companies have expressed concern that Nielsen’s rating methods haven’t kept pace with technology and don’t accurately take online and mobile audience views into account.