Investors are tuning into Arbitron Inc., the media research
company that compiles radio ratings, on the bet that it could be a target for
private equity firms,
according
to BusinessWeek. It's not just the company's lack of debt and strong cash
flow that has investors listening, but also the company's next-generation
metering technology. The company is rolling out a new Portable People Meter,
which can passively record what media a person is listening to or watching —
currently, survey participants must keep a paper record. Because the
pocket-sized digital device will increase accuracy, Arbitron could increase
its cash flow by charging more, according to BusinessWeek. It's already
secured a long-term contract with Clear Channel Communications Inc. However,
with so many buyout firms owning a stake in VNU Group, parent of rival AC
Nielsen, the list of potential buyers who could afford the price tag is rather
short. However, last year's VNU auction provides some idea of who could be
watching Arbitron. Those bidders who didn't win a stake in VNU could include
Bain Capital, Goldman, Sachs & Co. and TPG. Other bidders, who weren't
involved in VNU bidding, could include Providence Equity Partners LLC
and Elevation Partners. —Matthew Wurtzel
See
story from BusinessWeek
See
VNU auction profile from AuctionBlock.com
Continue reading below
