Media ratings company Nielsen Consortium will be acquired in a 16 billion deal

Nielsen is being acquired with a 16 billion (approximately Rs 1,21,160 crore) loan, almost a week after the media measurement company turned down a small offer earlier this month. The data collected by Nielsen plays a major role in determining where billions of advertising dollars are spent each year. The company itself has an annual global revenue of about $ 3.5 billion (about Rs 26,500 crore).

A team of private equity investors and institutional partners, led by Evergreen Coast Capital, an associate of Elliott Investment Management, will pay ব্র 28 (approximately Rs 2,100) for each outstanding Nielsen share.

Brookfield Business Partners will invest about $ 2.65 billion (approximately Rs 20,070 crore) through preferred equity, which is convertible to 45 percent of Nielsen’s ordinary equity. The equity version of the deal is valued at $ 10 billion (approximately Rs 75,700 crore) in cash, with the rest in debt to Nielsen.

Brookfield said Tuesday it expects to invest about $ 600 million (about Rs 4,550 crore) with the remaining balance financed from institutional partners.

Nielsen, based in New York City, rejected the group’s previous offer, saying it had significantly undermined the business. The offer was valued at $ 25.40 (approximately Rs. 1,920) per share, or about $ 9 billion (approximately Rs. 68,150 crore) before the loan was estimated. After it took a revised over, Nielsen shares jumped 22 percent in opening hours. The stock closed 20.3 percent higher at $ 26.72 (approximately Rs 2,020) per share.

Nielsen has been criticized for failing to come up with new ways to capture the amount of time people spend watching streaming services like Netflix or Hulu. This has become a more complex task as people now load content on phones, tablets and other smart devices.

Nielsen is trying to resolve those allegations and is expected to launch a new cross-media measurement tool by the end of the year. Nielsen One, according to the company, could provide a more comparable and comprehensive metric across platforms, from traditional television to a host of other digital and streaming services.

Nielsen’s board voted unanimously in favor of the revised proposal, and the company would go private if the transaction was stopped.

However, there is a 45-day go-shop period during which Nielsen can view and accept other offers, but the termination fee is $ 102 million (approximately Rs. 770 crore) for breach of contract with a private equity group.

The deal is expected to expire in the second half of this year. It still needs approval from Nielsen shareholders and regulators.

Leave a Reply

Your email address will not be published.