Nielsen
A consortium of investment funds acquired this Tuesday the Nielsen Holdings PCL, one of the world’s largest in the field of audience measurement, for US$16 billion, including the company’s liabilities, according to a statement issued by the company.
The consortium is led by Evergreen Coast Capital and Brookfield Business Partners and will be paying Nielsen’s shareholders US$28 per share. Just an hour after the move, Nielsen shares rose as much as 20% on the New York Stock Exchange.
“After a thorough assessment, the Board determined that this transaction represents an attractive outcome for our shareholders by providing a cash takeout at a substantial premium while supporting Nielsen’s commitment to our clients, employees, and stakeholders. The Consortium sees the full potential of Nielsen’s leadership position in the media industry and the unique value we deliver for our clients worldwide,” said James A. Attwood, chairperson of Nielsen’s Board of Directors.
Nielsen was dealing with the consortium in recent weeks, but last Sunday it broke off the negotiations, to finally get the buyers to improve their previous offer by 10%, which also represents 60% more than the price of the shares set on 11 March, the last date before the news of its sale was leaked.
As a marketing measurement firm, Nielsen collects data and releases it to advertisers to help them determine where to direct marketing dollars, having annual global revenue of about US$3.5 billion. Nielsen operates in more than 100 countries and employs around 44,000 people internationally. However, the company has been losing relevance as television is migrating towards the streaming model due to the boost of social media.
