Nielsen sells to private equity groups for $16 billion

Nielsen has been sold to two private equity groups in a $16 billion all-cash deal.

The sale with Evergreen Coast Capital Corporation and Brookfield Business Partners is expected to close in the second quarter and will also assume all outstanding debt. 

It comes after the media measurement giant rejected a $15 billion deal because it could not "adequately compensate" shareholders for Nielsen's growth prospects and undervalued the business.

That deal included Nielsen investor Elliott Management Corp., which is affiliated with current suitor Evergreen.

Chairman James Attwood said in a statement: "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," he said.

Neilsen shares jumped about 21% in mid-day trading, offering $28 for each share.

Senior executives at Evergreen and Brookfield say the Nielsen brand still commands respect in the crowded media measurement ecosystem.

But Jesse Cohn, a managing partner, and Marc Steinberg, a senior portfolio manager, with Evergreen and Elliott, said that Nielsen is a brand an authority for media audience measurement.

"After months of deep market analysis, industry diligence and management reviews, we are firmly convinced that Nielsen will continue to be the gold standard for audience measurement."

"Having first invested in Nielsen nearly four years ago, we have a unique appreciation for the company's ongoing relevance to the global, digital-first media ecosystem.

"Today’s outcome represents a significant win for Nielsen’s shareholders and for the business itself, as our multibillion-dollar investment will help Nielsen reinforce its transformation at this critical inflection point."

Ashwin Navin, co-founder/CEO of Samba TV, said: "The ad industry is moving to a multi-currency future, where omni-channel measurement systems built on first-party data need to capture everything that viewers see on a global scale.

"Nielsen’s legacy in measurement is quite strong and going private should give the company the time and resources needed to retool and develop future-proof solutions that play in this multi-currency world," he added.