WPP Partners with Rentrak in US on TV-Measurement Business

By Ian Walker

LONDON--Advertising giant WPP PLC (WPP.LN) said Thursday it has reached an agreement with Rentrak Corp. (RENT) to take an interest in the U.S.-based film and television measurement company through the injection of Kantar Media's U.S. television-measurement business.

In exchange for Kantar Media's U.S. television-measurement business, WPP will get $98 million of Rentrak's common stock. It will also buy further shares for $56 million, taking its interest to 16.7%.

As part of the deal, WPP's global media investment management company, GroupM, will be able to integrate consumer data volumes of television information using Rentrak's data and technology.

"These agreements continue WPP's strategy of developing its services in important markets and sectors and strengthening its capabilities in digital and data investment management businesses," WPP said.

WPP's digital revenues were over $6 billion in 2013, representing 35% of the group's total revenue of $17.3 billion. WPP has set a target of 40%-45% of revenue to be derived from digital in the next five years.

The deal with Rentrak is expected to close by the end of the year.

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