Cuban backed-Rentrak target for possible takeover - analysts

By Rizza Sta. Ana

Sep 13, 2013 04:54 AM EDT

Analysts speculated that Rentrak Corp. would be looking to have companies like Google place acquisition bids. Rentrak, whos technology collates info on consumer's movie and TV habits, is starting to look like an attractive takeover target for companies who in need of mobile and digital content ratings analysis.

In a phone interview, BWS Financial analyst Hamed Khorsand said, "For what they do and the technologies they develop for tracking data, it makes a lot of sense for someone bigger to seriously look at them and buy them. If you're in any kind of media or advertising, it gives you full control over it."

In data compiled by Bloomberg, Rentrak would be seeing double in sales over the next three years. Its product was also timely for advertising firms who were looking to improve their marketing efforts. Perritt Capital Management Inc also said that Rentrak's larger rival Nielsen Holdings NV might be interested in acquiring a stake in the former. Brean Capital LLC also said that bidders might offer three times the market value of Rentrak or up to USD1 billion.

Rentrak spokesperson Antoine Ibrahim did not comment when asked if his company had been approached for an acquisition bid or if the company would consider a sale. Cuban, who has an 8.2% stake in Rentrak based on data comiled by Bloomberg did not also return emailed requests. 

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