It All "Ads" Up in New Deal for Roku Stock
It's hard to frame a new strategic alliance between Roku (NASDAQ: ROKU) and Nielsen (NYSE: NLSN) as anything other than a win-win arrangement. It's easy to see what Roku will be getting out of the deal. The streaming video pioneer will be buying Nielsen's Advanced Video Advertising business, a transaction that include's Nielsen's video automatic content recognition and dynamic ad insertion technologies. Ad revenue is the lifeblood of free-to-use Roku, and this move will speed up the launch of Roku's end-to-end dynamic ad insertion platform for TV programmers.
Nielsen is also coming out ahead here, and not just because it will be coming into an undisclosed sum of dough in the asset sale. The strategic alliance finds Roku integrating Nielsen's ad and content measurement products into its fast-growing platform. The move will help make Nielsen ONE -- its cross-media measurement solution -- that much more ubiquitous. Nielsen has been top dog in viewer tracking for decades, but it's had to learn new tricks in the digital revolution. After posting slight declines in revenue for three consecutive years it can use a little fresh thinking to get its top line moving in the right direction again. Roku and Nielsen have been partners before, but the new strategic alliance takes things up a notch.
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Source Fool.com
