Nielsen Rejects Private Equity Group’s Acquisition Bid – What We Know!

Nielsen Holdings PLC has turned down a bid by a private-equity consortium to purchase the media-measurement big, noting that the corporate feels the proposal “doesn’t adequately compensate shareholders for Nielsen’s development prospects.”

Shares within the firm, which has been beneath scrutiny for months as TV networks that characterize a few of its greatest purchasers have sought new measurement work from rivals, soared greater than 40% on Monday on a report {that a} group that included Nielsen investor Elliott Administration Corp. sought to purchase the corporate for what might be round $15 billion, together with debt.

Nielsen mentioned its selection was bolstered by conversations with one among its largest shareholders, The WindAcre Partnership, an investor since 2013. WindAcre declined to affix the private-equity consortium and mentioned it could transfer to dam an acquisition if Nielsen selected to simply accept the bid. WindAcre, which has additionally been a big investor in Amazon and Google, “views Nielsen’s intrinsic worth to be considerably larger than values proposed by the consortium,” Nielsen mentioned in an announcement. WindAcre “has financial publicity” to round 14.4% of Nielsen’s shares, along with a 9.6% stake within the firm.

“We proceed to have robust confidence within the administration crew and Nielsen’s technique to create long-term worth for shareholders,” mentioned James A. Attwood, chair of Nielsen’s board of administrators, in an announcement. “We’re at all times open to exploring any avenue to create worth for shareholders, however the Board is in settlement with WindAcre, one among our largest shareholders, that the Consortium’s proposal considerably undervalues the Firm. Additional reflecting our confidence within the Firm, we plan to start share repurchases, which we anticipate to be an necessary factor of our ongoing balanced capital allocation technique.”

Even so, Nielsen has been beneath a microscope for months. TV networks and their homeowners have grown disenchanted with Nielsen’s skill to rely viewers who might watch their favourite packages by way of digital means, on cell screens on by means of streaming video. Nielsen has misplaced trade accreditation for its nationwide TV scores service, and is engaged on a brand new measurement methodology that will tabulate unduplicated cross-stream viewership, but it surely is not going to be rolled out in full for a number of months. In the meantime, most of the media firms, together with NBCUniversal, WarnerMedia and others have struck pacts with new measurement distributors to create so-called “alternate currencies” in time for the trade’s subsequent “upfront” ad-sales market.

Nielsen has confidence its present efforts to win again accreditation are on observe, together with a retooling of its audience-measurement know-how it believes will come on-line this 12 months. Nielsen has already struck a testing alliance with entities similar to Walt Disney Co. and Interpublic Group, and has begun to make out there new knowledge analyzing unduplicated audiences who watch their favourite programming throughout linear and digital venues. The problem to that effort comes from the networks who’ve begun to create their very own audience-measurement efforts utilizing rivals similar to iSpot, ComScore and VideoAmp, in hopes that advertisers will begin transferring some portion of their media buys to be graded by their options.

 

 

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