The deal will see WPP buy the remaining 70% in media measurement company firm AGB that it does not own and then merge this with VNU's measurement business in around 40 countries. VNU will then pay a sizeable sum to WPP to reflect that the business of the British group will account for more than two thirds of the new firm.
Significantly, it does not include the US market where the VNU-owned Nielsen Media Research dominates the market. The new venture will give VNU a similar grip on the market internationally. In the US, broadcasters have complained that the dominant position of Nielsen distorts the market.
The new venture will operate in the UK, where WPP provides audience figures for the Broadcasters' Audience Research Board, as well as Italy, Canada, Australia, Turkey, Greece, Portugal and China, and will have revenues of more than 拢56m.
WPP acquired its 30% stake in what was AGB Italia Group in 1998, which it added to its existing television audience measurement business that also includes an investment in IBOPE Media Research in Latin America.
According to a report in the Sunday Telegraph, talks between WPP and VNU took place over the past two months, with the final meeting taking place in New York last week.
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