TEGNA Inc. TGNA's company, Cars.com, struck a deal to buy DealerRater, the industry's biggest automotive consumer review website. The companies didn't reveal the agreement terms. They expect the transaction to close by the end of August.
Cars.com said reviews were critical to the process of buying car. The company pointed out that 79 percent of car buyers and 68 percent of service customers have reported that review sites were one of the most helpful resources while selecting a car dealership.
The company's CEO and president, Alex Vetter, said, "With this acquisition, Cars.com has solidified its position as the leader in online automotive reviews and the preeminent authority for car shoppers and owners on what to buy, where to buy and who to buy from."
In 2011, Cars.com unveiled its reviews. Since then, it maintained its transparent model for generating consumer feedback providing better services to shoppers and customers. The company believes the addition of DealerRater and its review database would strengthen the value proposition.
DealerRater CEO, Gary Tucker, also reacted, "We are happy to be joining Cars.com and are proud to share a similar foundation. DealerRater is uniquely positioned to lead the industry transition to finding not only the right dealer, but connecting consumers with the right person at the right dealer."
Shares of the company dropped 6.5 percent on Tuesday at time of writing.
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