Nielsen Holdings (NLSN) shares soared higher Tuesday after a consortium of buyers lead by activist investors Elliott Investment Management agreed to acquire the TV ratings group for $16 billion.
The Wall Street Journal first reported the deal Tuesday, which will see private equity buyers, including Brookfield Asset Management and Elliott affiliate Evergreen Coast Capital Corporation pay $28 a share for Nielsen, a level that, alongside the group's debts, would give Nielsen an enterprise value of $16 billion.
Nielsen will have a 45-day 'Go Shop' window to pursue another takeover bid, but has unanimously recommended the current deal to its shareholders.
"Nielsen is deeply embedded in the media ecosystem and a trusted service provider to its customers. As a private company, Nielsen will be even better positioned to deliver the best measures of consumers' rapidly changing behaviors across all channels and platforms," said Brookfield Business Partners' David Gregory. "We are pleased to invest in this iconic company and help lead the industry into the next generation of audience measurement."
Nielsen shares were marked 21.7% higher in pre-market trading to indicate an opening bell price of $27.02 per share.
Earlier this month, Nielsen rejected an unsolicited approach from a private equity group that valued it at $25.40 per share, arguing that the bid "does not adequately compensate shareholders for Nielsen's growth prospects", and received the backing of one of its largest investors, WindAcre Partnership LLC.
WindAcre said at the time that a $9 billion bid "does not come close to recognizing Nielsen's intrinsic value and we were not going to be forced out of our holding at this price. We believe strongly that the Board made the right decision in the face of an inadequate offer."
