Nielsen is to acquire radio measurement firm Arbitron in a $1.3bn cash deal.
The FT reports that the deal will expand Nielsen’s consumer tracking business to include consumer listening habits.
Nielsen chief executive David Calhoun told The Financial Times, “This advances all the long-term objectives of our company because we capture more of the consumers’ time.
“We have a broader measurement of what is rapidly changing consumer behavior,” he added. “The ROI point of view is what all of our clients want. They spend money to advertise. They spend money to advertise across mediums.”
Nielsen and Arbitron saw $6bn in revenues in the 12 months ended September 30 and adjusted EBITDA of $1.7bn. The FT says Nielsen expects cost savings of at least $20m.
Clear Channel Communications chief executive Bob Pittman has hailed the news as a potential boon for radio.
“We hope this combination will elevate the awareness among marketers of the real value and power of radio. If so, this is a very good thing for radio,” he said.