Tribune Media Co, which is known to be one of the biggest US TV station operators has reached an agreement to sell its media data unit, Gracenote to the advertising tracking company Nielsen Holding Plc for a whopping amount of $560 million.
Gracenote, Inc., provides music and video metadata and technologies to entertainment products and brands in the United States and internationally. It also provides music recognition technologies that compare digital music files to a worldwide database of music information, enabling digital audio devices to identify the songs.
The company operates five business verticals: Music, Video, Sports, Automotive and Video Personalization and is headquartered in Emeryville, California, which began operations as a CD metadata provider nearly 20 years ago.
Few of Gracenote’s customers are Apple Inc, Tesla Motors Inc, Amazon.com Inc and a few others.
According to The Wall Street Journal, the deal by Nielsen with the Tribune is a deal that Nielsen hopes will boost its ability to gauge audience behaviour amid shifting media habits. It also reported that the move came amid a long-running dispute between TV companies and Nielsen. The TV industry, which has seen traditional ratings fall as eyeballs shift to newer platforms, has criticised Nielsen for failing to keep up with the shifting media habits.
But the Tribune said that it was selling off nearly all of its digital and data business to focus on its core television and entertainment business and that they expected $500 million in after-tax proceeds from the deal to repay the existing debt, Fox News reported.
The Nielsen Company is a global marketing research firm, with its headquarters in New York City, United States. Nielsen Ratings, which is known to be one of Nielsen’s best creations is an audience measurement system that measures television, radio and newspaper audiences in their respective markets.