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ComScore-M:Metrics: “We Want To Know Behavior Across The Internet Regardless Of Device.”

Quickly following the announcement that comScore acquired Seattle-based mobile measurement firm M:Metrics for $44.3 million in cash, I talked to Will Hodgman, the co-founder, president and CEO of M:Metrics. He said that the combination of the two companies was essential for serving clients going forward. The difference between a person accessing content on the Internet and on a mobile phone is fading. Hodgman: “We want to know behavior across the internet regardless of device.” Release.

Why sell?: Hodgman said it’s about bringing together information from wireline and wireless networks together. “The connectivity by device across wireline and device is becoming one. ComScore (NSDQ: SCOR) needed the mobile solution, and we needed to accommodate clients, as well…This is not something that’s just occurred to us. It’s been with me since 1999, when phones weren’t particularly capable, but we had PDAs with Wi-Fi….Most of our clients are asking for these solutions already and comScore clients are asking for the same thing. They want to know the relationship between wireless and wireline.”

Why comScore?: When Telephia was up for sale, “we naturally got pulled in, so it goes back a number of months. W found that companies were interested in also finding a mobile solution.” Hodgman declined to name other bidders.

How much money did M:Metrics raise?: Hodgman said they had raised $18 million. “I’m very happy about this. I’ve always had a deep respect since comScore’s inception….I’ve been so appreciative and amazed at what comScore has done. They are in 38 countries, and extended themselves to six regions, and their client base is substantial. We have complimentary client base with very little redundancy. We are very complimentary. As media starts to come to mobile, most of comScore’s business is in media, and not as much in the telecom, infrastructure and handset businesses. Hopefully those two, in the future, come together. Media comes to mobile, mobile goes to media, and there’s the thing that connects it all called the Internet, or the signal. I’ve been in acquisitions that aren’t quite as obvious.”

How does this compare to Telephia’s $440 million sale to Nielsen?: “Telephia in many respects, had a very different business. The piece, where we competed against them, was a small piece. They are in the quality of network service business, which had very large deals with operators and substantial revenue stream, so I think I would expect and believe that [Nielsen was] looking at total revenue and doing a multiple off that. The piece that competes with us, I believe they were probably smaller.”

Is this like the sale of AdRelevance?: Hodgman founded AdRelevance, which measures the Internet, and sold it to Jupiter Media (NSDQ: JUPM) for about $66 million in stock. “It’s a very different time. In 1999, it was still a party, and there’s more grounding in today’s marketplace and the financial community is more grounded. There are differences.”

How will the integration take place?: “If you hear hesitancy in my voice, it’s because I’m now part of a publicly held company, so there’s certain disclosure laws and rules. I’ve been advised not to talk about the future. It’s obvious there are complimentary services, and that we are not redundant or competitive, but there will be natural efficiencies, with their sales force and ours together, and our technology and innovation in engineering. We believe there will be exciting things to come.”

What’s an example of how the two companies can serve clients better going forward?: He said the common one is for an advertiser, which currently places ads on the Internet, but wants to know what mobile will add in terms of incremental reach or frequency. “Can I can get incremental reach or frequency by combining the two, and it’s a good question that needs to be answered,” he said. Another question that can be answered is about loyalty. Will the places that people go on the Internet be the same places they go on the phone. “Sure why not? But that’s just theory, we have to answer that question.”

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May 28, 2008 5:46 PM ET
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Posted In: Advertising, Entertainment, Media & Publishing, Money, M&A & Venture Capital, Mergers & Acquisitions, Venture Capital, Research & Metrics, comscore, m:metrics, will hodgman

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