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Birth of a Ratings Giant
The AGB Group and Nielsen Media Research International have today announced a 50/50 joint venture that will offer television ratings in 30 countries. AGB Group's TV audience measurement services will merge with those wholly owned by Nielsen Media Research International. The deal does not include Nielsen's US TV ratings service.
The new company will be known as AGB Nielsen Media Research and will cover major markets including Australia, China, Hong Kong, Italy, South Africa and the UK. There are virtually no geographical overlaps between the TV ratings coverage of the AGB Group, which is owned by Kantar Media Research, and that of Nielsen. Taken together, the combination of the AGB Group and Nielsen Media Research and Nielsen's other partners will support clients in 46 countries that represent more than 70% of the global television economy.
The company aims to combine leading edge technology with 'an entrepreneurial attitude' and offer global coverage and cross-country support on a new level for advertisers, advertising agencies, and media owners with multi-national interests. It will employ approximately 1800 professionals and will have revenues of approximately USD 110 million based on 2003 financials.
The Board of Directors of the new company will contain equal representation from Kantar and Nielsen parent company VNU. Members will include Kantar CEO Eric Salama and VNU Media Measurement & Information Chairman & CEO Michael P. Connors. The AGB Group will lead the management, with Rolando Stalli and Dr. Alberto Colussi responsible for day-to-day operations and based in Milan, the current headquarters of AGB. The Board will be based in the Netherlands.
The transaction is subject to customary closing conditions and regulatory approvals, and is expected to be completed in the fourth quarter of 2004.
Connors says the deal is 'a wonderful strategic fit, one that capitalizes on the complementary strengths of our two companies, and allows us to deliver to our clients even better information and insights about viewing habits'.
According to Dr Colussi. 'AGB has constantly pursued the objective of becoming a global TAM provider by investing in its proprietary tools - meter technology, production and analysis software - and achieving high quality standards in all of the 18 markets where it currently operates. To achieve a truly global position, it was important to join forces with Nielsen Media Research, the company that started the TAM service 50 years ago'.
Web sites are at www.agb.com , www.kantargroup.com and www.vnu.com .
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