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Monday, September 9, 2019

Billboard to Acquire Music Division From Nielsen


Valence Media, the parent company of famed entertainment-industry publication Billboard, is acquiring the music-industry data, software and analytics business of Nielsen Holdings Plc, according to Bloomberg citing people familiar with the situation.

The transaction would bring the music industry’s top chart and data providers under one roof. It’s expected to close later this year at a price in the eight-figure range, said the people, who asked not to be identified because the purchase hasn’t yet been announced.

The two companies have been partners for decades: Nielsen supplies song and album sales data to Billboard, which uses it to assemble its charts. But the deal would allow Billboard to do more with Nielsen’s information, the people said. Billboard could put Nielsen-based charts and data behind a paywall and generate more revenue, one of the people said.

For Nielsen, which traces its history to 1923, the deal is part of a strategy to sell off its business in parts. It held earlier talks to sell the whole company to private equity buyers, but those efforts have yet led to a deal. Nielsen, based in New York, announced a strategic review last year after a disappointing forecast and the retirement of its CEO sent its shares plunging. That review is ongoing.

Billboard -- best known for its pop-music charts -- is part of a media group that includes the Hollywood Reporter, Spin, Vibe and Stereogum. Earlier this summer, Valence Media also acquired the news-app startup Zig.

Billboard’s charts have been the music industry standard for decades. Though the company has struggled with turnover at the top in recent years, Billboard magazine remains a staple of record labels across the country.

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