Media Measuring Firm Nielsen Sells Out For $16B

Nielsen is being acquired for $16 billion, including debt, about a week after the media measurement company rejected a $9 billion offer, Michelle Chapman reported for the Associated Press (AP).

Photo Insert: Nielsen has come under criticism for failing to create new methods of capturing the amount of time people spend watching streaming services, such as Netflix or Hulu.

Viewing data collected by Nielsen plays a big role in determining where billions in advertising dollars are spent each year. The company itself has annual global revenue of about $3.5 billion.

A group of private equity investors led by Evergreen Coast Capital Corp., an affiliate of Elliott Investment Management LP and Brookfield Business Partners LP along with institutional partners will pay $28 for each outstanding Nielsen share.

Brookfield Business Partners will invest approximately $2.65 billion via preferred equity, convertible into 45% of Nielsen’s common equity. The equity version of the deal is worth just over $10 billion, with the remainder in debt held by Nielsen.

Brookfield said Tuesday that it anticipates investing approximately $600 million, with the remaining balance funded from institutional partners.

Nielsen Holdings Plc, based in New York City, turned down the group’s previous offer, saying it had significantly undervalued the business. After it accepted the revised over, shares of Nielsen jumped 22% at the opening bell.

Nielsen has come under criticism for failing to create new methods of capturing the amount of time people spend watching streaming services, such as Netflix or Hulu. It has become a much more complex task as people now load content onto phones, tablets, and other smart devices.

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