Comscore raises $20M with an option to bump it to $50M, in a bid to rebuild its digital measurement business
Comscore’s title is usually in the news due to its widely-cited analysis and stats round media site visitors and different evaluation charting digital client habits. Extra lately, it’s been arising for an additional cause: ongoing company upheaval and its tumbling inventory worth. At this time comes the newest improvement in that story: the corporate announced that it has raised $20 million, with the choice of accelerating the sum to $50 million, from a agency known as CVI Investments.
“This transaction strengthens our balance sheet and positions us to pursue our refocused growth strategy while providing the flexibility to better apply resources to meet our business objectives, and ultimately drive long-term value for our stockholders,” Dale Fuller, Interim Chief Government Officer of Comscore, stated in a press release.
As defined in the 8-K, the cash is coming within the type of a share buy that’s anticipated to shut round June 26.
Comscore didn’t give extra specifics about the way it plans to make use of the funding, however it comes at a tough time, with the inventory in the present day at one level dipping to a 52-week low at $7.39/share. Earlier this yr, it lost both its CEO and its president, and then this month its COO departed after lower than a month with the corporate. Counting its present interim CEO, it has been by 5 CEOs within the final 5 years. In Could, the loss-making firm also announced that it will be lowering headcount by 10%, or 180 folks, as a part of a restructuring and energy to maneuver into profitability.
Comscore competes with the likes of Nielsen in measuring media consumption and patterns of digital customers, however that isn’t its solely problem.
The corporate, and others prefer it, have historically been a key part on the planet of promoting, as they supply an inportant, third-party evaluation of viewers information, essential for serving to to plan media spend and campaigns. However the rise of adtech and advertising and marketing tech, and a brand new array of locations the place advert stock is positioned past web sites, has created a brand new degree of extra granular measurements and buyer calls for, so a part of the problem for Comscore has been to construct new merchandise to satisfy these new eventualities.
Its most up-to-date collection of govt departures and workforce reductions haven’t been the primary confronted by the corporate: it has additionally been the topic of an SEC investigation into its accounting practices, having admitted in 2018 that it overstated revenues by some $127 million ensuing from a long-term WPP partnership. Previous to that, longtime CEO Gian Fulgoni left the corporate over the identical downside.
Final yr, it was reported that Comscore had engaged Goldman Sachs to succeed in out to events doubtlessly fascinated about buying it, together with strategic acquirers working in an analogous house and buyout corporations. The talks had been by no means confirmed and nothing ever materialised on the time.
The corporate’s market cap is now at round $460 million, having seen its share worth decline drastically since 2015.