Arbitron becomes Nielsen Audio as sale closes

Story by Inside Radio

Nielsen today closed on its $1.26 billion deal to buy Arbitron. The radio ratings service is being rebranded Nielsen Audio, and it will become part of Nielsen’s U.S. Watch business segment that also includes the TV ratings business. “This is a great day for Nielsen and a natural step in our evolution,” Nielsen CEO David Calhoun says.

Nielsen offered no details of any immediate changes it plans to take at Arbitron, although Calhoun notes that they plan to use people meter technology for such things as streaming audio and tracking TV viewing in out-of-home environments.

Arbitron staff members say in the meetings they’ve had with Nielsen representatives during the past few weeks that their new owners asked more questions than offered answers of what may change. But they did make it clear that it was an acquisition, not a merger.

Nielsen has had plenty of time to consider how it wants to integrate its long-time rival media research company, and staff was told to expect to see most of the changes implemented by year’s end. In a call with analysts last week, Calhoun said Nielsen plans to implement a “restructuring,” saying he believes the company will find $20 million in cost synergies within a few months. “We can’t wait to close and then get in to take a look under the hood,” he said.

Today’s closing ends a courtship that began nearly one year ago to the day. It was last October 1 that then-COO/CFO Sean Creamer received a call from Nielsen CFO Brian West expressing the measurement behemoth’s interest in potentially rolling up the two companies. Arbitron had already begun the process of shopping itself and by mid-October Calhoun reached out to former Arbitron CEO Bill Kerr to discuss “strategic opportunities.” In regulatory filings Arbitron says Nielsen had “strong interest” and nine days after that CEO face-to-face, an offer was in hand. Nielsen’s first offer of $45 per share was countered by Arbitron at $50 — ultimately the $48 figure was settled on.