A client seems to be at televisions in a retailer in Indianapolis on Friday, Nov. 26, 2021. (AP Picture/Darron Cummings, File)
SILVER SPRING, MD. --
Nielsen shares tumbled 16 per cent on the opening bell Monday after the TV scores and advertising information firm rejected a US$9 billion takeover bid from a gaggle of personal fairness companies.
Nielsen mentioned that the supply of US$25.40 per share “considerably undervalues” the New York Metropolis firm. It mentioned late Sunday that it had consulted with, amongst others, its third largest shareholder WindAcre Partnership, which opposed the sale at these phrases.
WindAcre mentioned Sunday that it might purchase sufficient shares to scuttle the deal if the board went additional. Nielsen mentioned that shareholder approval was unlikely with out help from WindAcre, which already owns a stake of greater than 9 per cent.
“We don't imagine the supply comes near recognizing Nielsen's intrinsic worth and we weren't going to be compelled out of our holding at this worth,” mentioned Snehal Amin, managing accomplice of WindAcre. “We supposed to dam the transaction, in order that we might understand, in time, the intrinsic worth of our funding. We imagine strongly that the Board made the fitting choice within the face of an insufficient supply.”
Nielsen, as a substitute, will start shopping for its personal shares below a beforehand permitted US$1 billion share repurchase authorization.
Media firms have been extra vocal not too long ago of their unhappiness with Nielsen, which for many years has had a digital monopoly on measuring tv viewership, statistics used to control billions of dollars in promoting spending. Critics allege that Nielsen isn't outfitted to deal with the dramatic shift towards streaming companies and viewing on a big selection of units.
Hypothesis over a potential takeover first emerged final week, sending shares up 30 per cent.
Nielsen mentioned Monday that it's on schedule to ship its resolution for monitoring viewership throughout media platforms someday this yr.
On the opening bell, shares of Nielsen Holdings Plc. slumped US$3.92, to $20.52.
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