WPP is selling its 50% stake in TV measurement firm, AGBNielsen Media Research, to venture partner Nielsen. The deal will give Nielsen full ownership of AGBNielsen. In exchange WPP will acquire Nielsen's advertising analytics firm, SRDS, and campaign organiser, PERQ/HCI. The UK ad giant will also acquire Nielsen's 11% stake in three units of the Ibope Group, a Latin American market research firm in which WPP already holds a 31% stake.
The deals are intended to avoid antitrust objections following WPP's takeover of UK market research company Taylor Nelson Sofres (TNS). The European Commission (EC) approved WPP's USD2.2bn acquisition of TNS last month, on condition that WPP sold its TV audience measurement services in Europe and the TNS market research business in Ireland. The EC initially found the merger raised "serious competition concerns", as the combined entity would control a 60% share of the TV audience measurement market in Europe and have a dominant position in the Irish market research sector. To avert the EC's concerns, WPP offered to divest the TNS market research unit in Ireland and to sell either its own stake in the AGB Nielsen joint venture or the TNS TV audience measurement unit.
WPP will integrate the new assets into the Kantar Group, WPP's information and consultancy division. The firm expects the transaction to close by the end of the year.
StrategyEye's related companies: Taylor Nelson Sofres (TNS), European Commission (EC), The Nielsen Company, WPP
