Comscore’s title is often within the information due to its widely-cited analysis and stats round media site visitors and different evaluation charting digital client habits. Extra not too long ago, it’s been developing for one more purpose: ongoing company upheaval and its tumbling inventory value. At this time comes the most recent improvement in that story: the corporate introduced that it has raised $20 million, with the choice of accelerating the sum to $50 million, from a agency referred to as CVI Investments.
“This transaction strengthens our steadiness sheet and positions us to pursue our refocused development technique whereas offering the pliability to higher apply sources to fulfill our enterprise aims, and finally drive long-term worth for our stockholders,” Dale Fuller, Interim Chief Government Officer of Comscore, stated in a press release.
As defined in the Eight-Ok, 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 misplaced each 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 via 5 CEOs within the final 5 years. In Might, the loss-making firm additionally introduced that it might be decreasing headcount by 10%, or 180 individuals, 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’s not its solely problem.
The corporate, and others prefer it, have historically been a key part on this planet of promoting, as they supply an inportant, third-party evaluation of viewers knowledge, mandatory 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 fulfill these new situations.
Its most up-to-date sequence of government 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 drawback.
Final yr, it was reported that Comscore had engaged Goldman Sachs to succeed in out to events probably enthusiastic about buying it, together with strategic acquirers working in the same house and buyout companies. 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 value decline drastically since 2015.