By Greg Hazley
Ratings giant Nielsen Holdings has inked a deal to acquire radio ratings rival Arbitron in a $1.26B deal reflecting consumers' resilent attachment to radio.
The $48-per-share cash offer is a 26% premium on Arbitron’s Dec. 17 closing price and has been approved by both companies’ boards.
The acquisition will likely put Nielsen’s annual revenue north of $6B.
Nielsen CEO David Calhoun expressed confidence that radio will continue to be a preferred media of consumers in years to come.
“U.S. consumers spend almost 2 hours a day with radio. It is and will continue to be a vibrant and important advertising medium," he said in announcing the deal. Calhoun said Arbitron will help Nielsen better solve unmeasured areas of media consumption, including streaming audio and out-of-home.
Aribtron last week named EVP/COO Sean Creamer to succeed retiring CEO William Kerr, 71, on Jan. 1.
Nielsen, based in New York, had revenue of nearly $5.6B for the year ended Sept. 30, while Arbitron, headquartered in Columbia, Md., posted $445M for the period. Net incomes were $329M and $58M, respectively, for that period.
Both companies are traded on the New York Stock Exchange. |