The Drum: Industry Experts—Nielsen’s $16bn Buyout is a Signal for Others to Attack
Extracted from The Drum, Author Kendra Clark
Following news that TV ratings titan Nieslen has come to a takeover agreement with a group of private equity players, media measurement experts explain why the moment for challenger brands is now.
Nielsen will soon have new owners — a move that will not only signal a historic change for the company, but also a radical change for the media measurement sector at large.
Nielsen on Tuesday announced it has come to a buyout agreement with a private equity consortium for $16bn, inclusive of debt — just over a week after it turned down a $15bn bid by the same group, citing undervaluation. The private equity group is headed by Brookfield Business Partners and Elliott Management-owned Evergreen Coast Capital Corp. Under the new agreement, shares will go for $28 each, up from $25.40 offered in the previous bid.
“Nielsen is the incumbent player in measurement and TV currency, and most media companies and marketers will look to NielsenOne as make or break for their business,” says Matthew Papa, the senior vice-president of global partnerships at search intelligence firm Captify. Plus, he says, “valuing the company at $16bn is a great bellwether for the iSpots, VideoAmps, and Comscores of the world, as it shows the massive upside to an exploding market.”
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