The Tv Ratings Measurement company Nielsen has come to an agreement with a private equity group for the amount of around $21 billion (US$16 billion). The investors made a smaller offer about a week ago which was turned down.
Both offers, the previous one that had been rejected and this one that moved forward, were made by a group of private equity investors led by Evergreen Coast Capital Corp., an affiliate of Elliott Investment Management L.P., and Brookfield Business Partners L.P.
The latter will also be the major shareholders in the company owning about 45 percent, with an investment of around US$2.6 billion in common equity. The purchase includes all of Nielsen’s debt.
Nielsen are considered a company of vital importance for advertisers in the US, as they have been providing statistics about viewership for many years and crucial information about performance of TV shows during all hours of the day. It is thanks to them that investors know which shows to invest in and what people’s TV habits are.
However, the company recently came under scrutiny for being unable to come up with new ways to keep track of what people are watching on TV streaming services like Netflix or Hulu. Nielsen will be attempting to correct these issues with the launch of a new measurement service, called Nielsen One, which will be more equipped to keep track of viewership ratings across a wider range of platforms.
The ownership deal is expected to go through, although Nielsen have a 45-day window to review the agreement. If they choose to back out of it, they will be hit with a US$102 cancellation fee.
