Neilson (TV Ratings company) to acquire Arbitron (Radio Ratings company)

Story by Inside Radio

Nielsen is getting back into the radio business in a blockbuster deal worth $1.26 billion. The TV measurement giant has signed an agreement to acquire all of Arbitron’s outstanding common stock at $48 per share in cash. Together, the two media measurement companies generated total revenues of $6 billion. Their combination is expected to produce cost synergies of at least $20 million.

“U.S. consumers spend almost 2 hours a day with radio. It is and will continue to be a vibrant and important advertising medium," Nielsen CEO David Calhoun says. "Arbitron will help Nielsen better solve unmeasured areas of media consumption, including streaming audio and out-of-home. The high level of engagement with radio and TV among rapidly growing multicultural audiences makes this central to Nielsen’s priorities.” Adding Arbitron’s out of home TV measurement assets will enable Nielsen to further expand its cross-platform TV measurement. “These integrated, innovative capabilities will enable broader measurement of consumer media behavior in more markets around the world," Nielsen president of global media products and advertiser solutions Steve Hasker says. "We will also bring local clients greater visibility to empower more precise advertising placement and campaign effectiveness.”

Outgoing Arbitron CEO Bill Kerr says “combining Nielsen’s global capabilities and scale with Arbitron’s unique radio measurement and listening information, advertisers and media clients will have better insights into consumer behavior and the return on marketing investments.”