Rentrak Corporation (NASDAQ:RENT), a company that focuses on analyzing consumers’ intake of media and can boast of having Mark Cuban as its second largest shareholder, has been the center of attention in its space of late as analysts expect a buyout from a larger firm.
The company is seen as a type of innovator in its space, able to provide much more specific and detailed information than a known name like Nielsen. Rather than depending upon sampling as Nielsen does, Rentrak employs technology that sifts through vast amounts of data.
Rentrak uses big-data technology that sifts through large sets of digital information to track media consumption on a variety of platforms. Services include monitoring social-media sites to gauge whether marketing dollars spent on movies that haven’t yet been released are sparking audience interest, and analyzing viewership of downloaded and streaming content.
The seemingly superior methods, combined with new estimates that show for the first time ever U.S. adults are spending more time with digital media everyday than watching TV, will lead to a doubling in revenue from $99 million this year to $203 million in 2016.
As such, a wide array of potential suitors has been discussed. From Google Inc (NASDAQ:GOOG), Nielsen Hldg NV (NYSE:NLSN), and TiVo Inc. (NASDAQ:TIVO), to advertising agencies like WPP Plc and Interpublic Group of Cos. are all seen as having interest in Rentrak. While Cuban remains silent on the company’s prospects, his 8.2% stake has doubled in value over the past twelve months.
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