Mega-Deal for Rentrak and WPP

Film and television measurement specialist Rentrak is to acquire the US TV measurement business of WPP's Kantar Media for $98m in Rentrak common stock. WPP will then spend a further $56m to bring its overall share of the US-based firm to 16.7%. The deal gives WPP's GroupM agencies full access to Rentrak audience data.

WPP may also purchase Rentrak shares on the open market, to a maximum total holding of 20 percent. Subject to customary regulatory approvals, the transaction should be completed by the end of calendar year 2014. No Kantar TV measurement or global development capabilities outside of the US are affected by the transaction.

Rentrak says it will integrate its national and local TV measurement with a number of Kantar's US-based services focused on digital media, ad spend and purchase data, giving its clients enhanced understanding of consumers' TV and purchasing habits, plus the link between the two. Kantar Media's US TV measurement customers and contracts will move over to Rentrak, and will now benefit from what Rentrak calls 'a single massive and passive TV measurement ratings service'.

Irwin Gotlieb, Global Chairman of GroupM explains the benefits for his company, which is the parent of Mindshare, MEC, MediaCom and Maxus: 'The proliferation of channels has so significantly fragmented audiences that legacy sample methodology simply can't keep up. Television measurement needs to move toward census-based methodology. Our agencies are doing such refined targeting and segmentation, and that work can only be supported by census data. It is our hope that we can act as catalysts in moving the industry toward greater data reliability and accountability.'

GroupM says it will use Rentrak's TV viewing information 'broadly' over time, using its advanced analytics for automotive and other categories in national and local markets to uncover insights into viewer and consumer behaviour; and its On Demand and multi-platform data to get a more complete picture of television viewing. It will also be used to quantify viewing levels in 'more than 200 networks that are not currently measured by the legacy sample currency, as well as in local markets where today's diary measurement has been less than stable'.

Kantar CEO Eric Salama comments: 'The combined expertise of Kantar and Rentrak will enable clients to better comprehend and leverage the relationship between United States TV viewing and brands. We are excited about the future products that we can develop with Rentrak for the US television industry. Clients will benefit from our focus on respondent-level media and purchase data.'

Rentrak CEO Bill Livek (pictured) comments: 'This agreement is designed to help all of our U.S. agency and TV advertiser clients with new services in television measurement and consumer insights. We are thrilled to be working with WPP and look forward to partnering with Kantar to provide the marketplace with the best next generation of services.'

Rentrak expects the agreement to result directly in multiple long-term revenue streams - and indirectly through expanded relations with GroupM; and says it will add between $7m and $9m in revenue and be slightly accretive in fiscal 2016.

Web sites: www.rentrak.com and www.kantar.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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