It’s a big deal, folks.
comScore and Rentrak Corporation have announced that the companies have entered into a definitive merger agreement under which the companies will combine in a stock-for-stock merger.
According to the WSJ, comScore’s acquisition of this rival platform represents a significant consolidation of players — a fusion that could help provide greater insight to advertisers about the type of content that consumers are watching and what types of ads are reaching them (and on which platforms).
Under the deal’s terms, each share of Rentrak will be converted into the right to receive 1.15 shares of comScore, valuing Rentrak at $732 million, compared with Tuesday market value of $697 million. Rentrak stockholders would receive $47.69 per share, a 9.9% premium, based on Tuesday’s closing prices. ComScore currently has a market capitalization of $1.7 billion.
comScore’s current Chief Executive Officer, Serge Matta, will lead the combined company as CEO.
By combining comScore and Rentrak’s products, talent and significant information assets, the new company will provide even more robust measurement solutions to the media and advertising industries, following the consumer whenever and wherever content is consumed.
“With the advent of digital technology, the time has come to offer the cross-platform measurement systems of the future: through which content owners will ultimately be able to quantify their entire audience, and agencies will have access to the cross-platform metrics needed to effectively plan and execute campaigns,” Matta said in a news release. “This merger also recognizes the critical importance of combining digital and TV assets for next generation media measurement, which requires a higher degree of precision at both a national and local market level.”
The merger is expected to close in early 2016.