USA

Comscore Enters Deal With Charter, Qurate Retail and Cerberus

Comscore Inc.

announced a deal with

Charter Communications Inc.,

Qurate Retail Inc.

and private-equity firm Cerberus Capital Management LP aimed at bolstering the finances of the troubled media-measurement company and strengthening its commercial relationships.

The Wall Street Journal reported earlier Thursday that the companies were close to a deal.

Charter, Qurate and Cerberus each will make a cash investment in exchange for shares of convertible preferred stock. Comscore will use the cash to extinguish its debt and improve its liquidity position, it said.

Backed by

John Malone’s

Liberty Media Corp.

, Qurate Retail owns home-shopping platforms QVC, HSN and e-commerce site Zulily, among other retail brands.

The deal will free Comscore from its loan arrangement with activist investor Starboard Value LP, which imposed strict covenants requiring it to have a minimum cash balance and steep interest payments, as well as terms for repayment of $204 million next year, according to securities filings.

Starboard will receive $204 million in cash from the investment proceeds, as well as accrued interest and 3.15 million common shares. The transaction is subject to shareholder approval.

As part of the deal, Charter will provide greater access to its anonymous data sources and rights.

Comscore also said it is extending its data agreement with

Comcast.

Comscore, known for its measurement tools for online and local media, as well as film viewing, has faced a number of challenges in recent years, including executive departures, an accounting scandal and a subsequent Securities and Exchange Commission investigation, which resulted in a $5 million settlement in 2019. The company has also faced increasing demand from media and marketing clients for new measurement capabilities.

Since 2019, Comscore’s stock price has plummeted more than 80%. Its shares jumped almost 16% on Thursday to $2.84.

Comscore already has relationships with various cable operators and data providers, including Charter. But the deal could improve Comscore’s access to the company’s trove of set-top box viewership data, helping it better compete with larger rival

Nielsen Holdings

PLC.

Media giants reliant on Nielsen ratings have called for more competition in media measurement.

Both companies are under enormous pressure to adapt their services to keep up with the rapidly changing media-consumption habits.

Comscore in late 2019 named

Bill Livek

as its CEO. Months earlier,

Bryan Wiener,

the former chief executive, and

Sarah Hofstetter,

former president, announced their resignations after less than a year in the roles, citing disagreements with the board over the execution of the company’s strategy.

Shortly after their departures, the company announced layoffs and said it was working to renegotiate data contracts and lower its fixed costs.

Write to Alexandra Bruell at [email protected], Miriam Gottfried at [email protected] and Suzanne Vranica at [email protected]

Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Related posts

How Property Booms Eat Our Economic Future

honynews12

Forget Uber, Zoom Might Be the Long-Term Threat to Car Sales

honynews12

Bipartisan Group to Unveil Covid Aid Legislation

honynews12

Leave a Comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More