VNU Snaps Up BuzzMetrics

VNU is to buy a majority interest in BuzzMetrics, a US-based firm that measures and analyses online consumer-generated media such as blogs. At the same time, VNU itself is the subject of a takeover bid and BuzzMetrics is due to acquire rival firm Intelliseek.

VNU currently owns a minority interest in BuzzMetrics. Following the merger with Intelliseek, VNU plans to increase its stake to 50.1%. The company will then operate under the name Nielsen BuzzMetrics.

BuzzMetrics' current CEO, Jonathan Carson, and Chairman, Itzhak Fisher, will remain in position, while Michael Nazzaro, Intelliseek's President and CEO, will become President and COO after the merger. The new company will have more than 100 employees, based in offices in the USA (New York, Cincinnati and Pittsburgh) and Israel.

The new combined company will build on its text- and new media-based analytics to help marketers develop effective marketing strategies and gain consumer insights. It will also continue to enhance the blogpulse.com portal, which mines more than 20 million blogs every day.

Intelliseek created the term consumer-generated media (CGM) to describe the various new non-corporate sources of online content, including blogs, public message boards, and product feedback sites. According to Carson: 'VNU's financial and strategic support of the new company validates CGM and word-of-mouth, and puts research in this burgeoning area on a par with other traditional media and marketing measurement.'

Susan Whiting, Executive VP at VNU's Media Measurement & Information group, says the expansion of VNU's measurement services into the CGM arena is 'an important evolution at a time when marketers are struggling to fully understand the consequences of consumer control'.

BuzzMetrics is no stranger to takeovers. Last year, the company expanded following a takeover by Israel-based Trendum, a provider of Internet search and linguistic analysis. The combined company kept the BuzzMetrics name (www.mrweb.com/drno/news4607.htm ).

VNU and Buzzmetrics expect to close the transaction within 30 days. They have not disclosed financial terms of the deal.

VNU announced yesterday that it is considering a bid from a private equity consortium (www.mrweb.com/drno/news5048.htm ). BuzzMetrics is online at www.nielsenbuzzmetrics.com

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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