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December 19, 2012

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Nielsen agrees to buy Arbitron for US$1.26b

NIELSEN Holdings NV, known for its television viewership ratings, yesterday agreed to pay US$1.26 billion to acquire its radio counterpart, Arbitron Inc.

The US$48-per-share purchase price represents a 26 percent premium to Arbitron's Monday closing price on the New York Stock Exchange.

Ratings - Nielsen's in TV and Arbitron's in radio - determine how much advertisers are charged to run commercials during TV programs and radio listening hours. The higher the rating, the more expensive the commercial spot.

"It's a huge deal for Nielsen," said Edward Atorino, an analyst with Benchmark Co. "It adds radio, which is a huge market."





 

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