The Nielsen Company, a New York-based media company whose shareholders include Blackstone Group and KKR, has agreed to sell its theater ticket sales data unit (Nielsen EDI) to Rentrak Corp. (Nasdaq: RENT). The deal reportdly is valued at $15 million in cash.
Rentrak Corporation (Nasdaq: RENT), a leader in multi-screen media measurement serving the entertainment and advertising industries, and The Nielsen Company, today announced that the companies have signed a definitive agreement under which Rentrak will acquire Nielsen EDI, a global leader in measurement, information and research solutions for the motion picture industry from The Nielsen Company. The transaction, which is expected to close in the first calendar quarter of 2010, is subject, in some jurisdictions, to consultation with employee representative bodies and other regulatory requirements. As part of the transaction, Nielsen will also enter into a long term data license agreement with Rentrak for continued access to certain box office sales information for certain of its existing products and services that currently use or feature such data.
Nielsen EDI, which will be integrated into Rentrak’s AMI division and its Box Office Essentials(TM) business, captures theatrical box office results from more than 50,000 movie screens in 14 countries. The combination will provide box office results for the United States, Canada, Australia, Argentina, Brazil, France, Germany, Hong Kong, India, Japan, Korea, Mexico, Russia, Spain and the United Kingdom, covering 90% of the global theatrical box office market.
“This strategic transaction will provide Rentrak with a substantial global platform, further enabling our ability to provide robust measurement capabilities and analytics to entertainment, media and advertising companies throughout the world, and from which to pursue new business opportunities,” said Bill Livek, Rentrak’s Chief Executive Officer.
“While EDI has been an important part of the Nielsen portfolio, this transaction allows our entertainment group to focus on its core businesses and those parts of the company that are most aligned with our long-term strategy. Nielsen remains committed to increasing its understanding of the connected consumer, with a special focus on the relationship between media consumption and consumer purchase behavior,” said Eric Weinberg, President, Nielsen Entertainment.
“Overseas box office continues to be a major contributor to movie receipts and is an important facet of our strategy to solidify Rentrak’s position as the ‘gold standard’ for worldwide, real-time measurement of theatrical box office ticket sales,” added Ron Giambra, Rentrak’s Executive Vice President, Theatrical Worldwide. “With the encouragement of our studio partners, our strategic geographic expansion will provide a truly unified view of the global motion picture consumer.”
About The Nielsen Company
The Nielsen Company is a global information and media company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and business publications (Billboard, The Hollywood Reporter, Adweek). The privately held company is active in approximately 100 countries, with headquarters in New York, USA. For more information, please visit, www.nielsen.com.
About Box Office Essentials
Box Office Essentials provides each studio with password-protected, real-time, web browser-based and 24/7 access to data pertaining specifically to their movie release titles. A sophisticated toolset allows studio distribution executives to view and analyze the information at different levels of detail and across a multitude of attributes (by theatre circuit, DMA, time zone, etc.), enhancing their ability to make faster, and better informed decisions. Additional features include online school calendars (K-12 and college), interactive release schedule and 24-hour subscriber support.
About Rentrak Corporation
Rentrak Corporation is an industry-advancing media measurement and research company, serving the most recognizable names in the entertainment industry. Reaching across numerous platforms including box office, home entertainment, on-demand and linear television, broadband and mobile, Rentrak provides unique and actionable insight for our clients and partners. From the introduction of our revolutionary Pay-Per-Transaction® distribution and revenue-sharing system, which equipped Rentrak with the intelligence and ability to deal with large, complex data streams, to the company’s exclusive Essentials(TM) suite of services, Rentrak has redefined digital audience measurement. Rentrak is headquartered in Portland, Oregon, with additional offices in Los Angeles, New York City and Miami/ Ft. Lauderdale. For more information on any of Rentrak’s services, please visit www.rentrak.com.