SAN DIEGO, and PORTLAND, Ore., Sept.
30, 2015 /PRNewswire/ -- Shareholder rights attorneys at
Robbins Arroyo LLP are investigating the proposed acquisition of
Rentrak Corporation (NASDAQ: RENT) by comScore, Inc. (NASDAQ:
SCOR). On September 29, 2015,
the two companies announced the signing of a definitive merger
agreement pursuant to which comScore will acquire Rentrak.
Under the terms of the agreement, Rentrak shareholders will receive
1.15 shares of comScore for each share of Rentrak they own, the
value of which is equivalent to $49.62 per share of Rentrak.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/rentrak-corp
Is the Proposed Acquisition Best for Rentrak and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Rentrak is undertaking a fair process to obtain
maximum value and adequately compensate its shareholders.
As an initial matter, the $49.62
merger consideration represents a premium of only 7.5% based on
Rentrak's average one-month closing price. This premium is
significantly below the average one-month premium of nearly 17.9%
for comparable transactions within the past five years.
Further, the $49.62 merger
consideration is significantly below the target prices of six
analysts, ranging from $85.00 set by
an analyst at Needham & Co. on October
10, 2014, to $62.00 set by an
analyst at Piper Jaffray on August
11, 2015. In the last three years, Rentrak traded as
high as $87.40 on November 28, 2014, and most recently traded above
the merger consideration – at $49.68
– on September 21, 2015.
On August 10, 2015, Rentrak
reported strong earnings results for its first quarter 2016.
Total revenue for the quarter was $27.5
million, an increase of 23% from the same period last year.
Net income for the quarter was $1.6
million, an increase of 265% compared to the same period
last year. Additionally, Rentrak has beat consensus analyst
estimates for adjusted net income in three out of its past four
quarters. In commenting on these results, Rentrak Vice
Chairman and Chief Executive Officer Bill
Livek remarked, "We are very pleased with our progress this
quarter, and continue to believe that we are firmly on target to
achieve our full year guidance given the health of our business in
the media ecosystem. Our partnership with Oracle Data Cloud will
expand our Advanced Demographics offering to help advertisers and
networks better understand how to reach their customers and
viewers. We are also making great headway with Rubik, where we
increased our client base from 10 to 14 in a short period of time.
Our political vertical will benefit from almost $4.5 billion in expenditures related to the 2016
elections, and our Sports business addresses a very large market.
We are excited about these and many other opportunities and our
ongoing ability to monetize them."
In light of these facts, Robbins Arroyo LLP is examining
Rentrak's board of directors' decision to sell the company now
rather than allow shareholders to continue to participate in the
company's continued success and future growth prospects.
Rentrak shareholders have the option to file a class action
lawsuit to ensure the board of directors obtains the best possible
price for shareholders and the disclosure of material
information. Rentrak shareholders interested in information
about their rights and potential remedies can contact attorney
Darnell R. Donahue at (800)
350-6003, ddonahue@robbinsarroyo.com, or via the shareholder
information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The law
firm represents individual and institutional investors in
shareholder derivative and securities class action lawsuits, and
has helped its clients realize more than $1
billion of value for themselves and the companies in which
they have invested.
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
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SOURCE Robbins Arroyo LLP