PORTLAND, Ore., Dec. 1, 2014 /PRNewswire/ -- Rentrak
(NASDAQ: RENT), the leader in precisely measuring movies and
TV everywhere, today announced it has completed the acquisition of
the U.S. television measurement business of WPP's Kantar business
unit for 1,526,790 restricted shares of Rentrak common stock.
Based on the closing price of Rentrak's common stock on
November 28, 2014, the shares have an
approximate value of $128 million.
The transaction includes Kantar Media's customer contracts and
customer relationships involved in U.S. television measurement,
creating the benefits of clarity and simplicity for clients in the
U.S. TV ratings marketplace with a single massive and passive TV
measurement service.
Rentrak expects the acquisition to produce multiple long-term
revenue streams directly, as well as from anticipated future joint
marketing agreements with Kantar and its expanded relationship
with, and endorsement from, GroupM. Rentrak expects to add
approximately $7 to $9 million in
revenue in fiscal 2016 as a result of the transaction, which is
expected to be slightly accretive in fiscal 2016.
In connection with the acquisition, WPP also purchased
additional restricted shares of Rentrak common stock from the
company for $56 million in cash,
giving WPP an ownership stake of 16.7 percent of Rentrak's stock as
of the closing date.
Safe Harbor Statement
The foregoing paragraphs contain forward-looking statements within
the meaning of the federal securities laws, including, without
limitation, that Rentrak will generate approximately $7 to $9 million in revenue in fiscal 2016 as a
result of the transaction and that it will be slightly accretive in
fiscal 2016, and that the transaction will expand Rentrak's
leadership position in television measurement and consumer
insights. These forward-looking statements are based on
Rentrak's current expectations, estimates and projections about its
business and industry, management's beliefs, and certain
assumptions, all of which are subject to
change. Forward-looking statements are not guarantees of
future performance and Rentrak's actual results may differ
significantly as a result of a number of factors,
including the company's ability to attract new revenue-sharing
customers and retain existing customers, the company's success in
maintaining its relationships with studios and other product
suppliers, the company's ability to successfully develop and market
new products to create new revenue streams, its ability to
successfully integrate acquired businesses, and Rentrak's customers
continuing to comply with the terms of their agreements. Additional
factors that could affect Rentrak's financial results are described
in Rentrak's reports on Form 10-K, 10-Q and other filings with the
Securities and Exchange Commission. Results of operations in
any past period should not be considered indicative of the results
to be expected for future periods.
About Rentrak
Rentrak (NASDAQ: RENT) is the entertainment and marketing
industries' premier provider of worldwide consumer viewership
information, precisely measuring actual viewing behavior of movies
and TV everywhere. Using our proprietary intelligence and
technology, combined with Advanced Demographics, only Rentrak is
the census currency for VOD and movies. Rentrak provides the
stable and robust audience measurement services that movie,
television and advertising professionals across the globe have come
to rely on to better deliver their business goals and more
precisely target advertising across numerous platforms including
box office, multiscreen television and home video. For more
information on Rentrak, please visit www.rentrak.com.
RENTF
Contact for Rentrak:
Antoine
Ibrahim
(646) 722-1561
aibrahim@rentrak.com
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SOURCE Rentrak