Nielsen to Acquire Radio Ratings Arbitron

The way of measuring ratings is now a bit smaller. Nielsen has measured ratings for television for a number of decades and announced it has now acquired Arbitron, the giant in radio ratings in a deal estimated to be worth over $1.26 billion, said company officials early Tuesday.

One company will now have the ratings measurement for the country’s two most popular mediums. Nielsen measures platforms that are digital as well. Nielsen announced it would be acquiring all of the outstanding shares of common stock for Arbitron for the price of $48 a share, which represents a 26% premium over the price of Arbitron stock as of the close of business on December 17.

Consumers in the U.S. spend nearly two hours each day with the radio and it is currently and will always be an important and vibrant advertising medium, said David Coleman the CEO of Nielsen.

William Kerr, the president of Arbitron said that by combining the scale and global capabilities of Nielsen with the unique listening information and radio measurement of Arbitron will give media clients and advertisers a better insight into the behavioral patterns of consumers.

Nielsen and the television industry have always had a relationship that has been complex. Cable networks and broadcasters often argue that the ratings giant has not moved quick enough to monitor the different and new platforms and that its traditional media sample is too small, thereby making it not as accurate as it could be.

The ratings deal will first face antitrust review and regulatory approval prior to being finalized.