Elliott Management Supports Split of Nielsen Holdings

The activist hedge fund has publicly supported the market research giant.

Nielsen Holdings has announced plans to split itself into two separate public companies. The plan – backed by Elliott Management – will unlock shareholder value.

“Separating into two companies represents the best path forward for Nielsen’s business and its shareholders, and we believe it will lead to substantial value creation,” said Elliott Partner Jesse Cohn in a statement.

“By separating into two independent companies, Nielsen is better able to position both its media and retail measurement franchises for long-term success with differential investment, profitability, capital return, and strategic frameworks.”

Splitting Nielsen Holdings – Elliott Management Pressure

Meanwhile, Nielsen Holdings started exploring alternative options after it received pressure from Elliott Management. The $38 billion hedge fund had previously urged a sale of the company. Nielsen Holdings is best known for its advanced television ratings that help determine commercial advertising rates.

The firm’s Global Media business will become one public business. This business will service media and advertising customers. This group has a mid-single-digit growth outlook, a mid-40% EBITDA margin. A statement states that it has a clear path to leadership in cross-platform measurement.

Further, the firm’s Global Connect business will offer research to consumer goods firms. The release also describes the division as a leader in retail sales measurement with an incomparable global footprint. More so, the firm projects low-single-digit growth outlook and path to significant margin expansion.

“The separation will also unlock the substantial valuation upside of both businesses, which today trade at a meaningfully depressed level after a year of uncertainty,” the statement continued. “In particular, this will highlight the Media business as a faster-growing, more profitable, and market-leading franchise, allowing it to garner an appropriate valuation multiple reflective of its significant value.”

Related: Hedge Elliott Management May Join Apollo Global Management to Save EP Energy Corp.

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.

Alt Insights

January 16, 2020

ESG: Lately-turned Tesla Bull Jim Cramer Adds Fink To The Mix

ESG: Lately-turned Tesla Bull Jim Cramer Adds Fink To The Mix

Latest Alternative Investment News

Digital Assets: Ray Dalio – Cash is trash; BTC is Untouchable; Libra Maybe; Stocks are Good; Gold is Best
January 24, 2020     Digital Assets, News

Ray Dalio, a long time bitcoin sceptic, again panned the cryptocurrency at Davos. Cash is trash; BTC is Untouchable; Libra Maybe; Stocks are good; Gold is Best, he said.

American Banking Association: M&A Expectations for 2020
January 24, 2020     Community Banking, Latest News, News

The American Banking Association has released its outlook for merger and acquisition activity in the banking sector in 2020. The ABA finds that the forces contributing to the consolidation of…

Private Equity: BGH Capital Makes Better Offer For Village Roadshow
January 24, 2020     News, Private Equity

Private equity firm BGH Capital has thrown its hat into the ring to acquire Village Roadshow. On Friday, BGH made an unsolicited counter-offer of $4 per share for Village. A…

Digital Assets: Square Granted US Patent For New Currency Exchange Network Including Cryptos
January 24, 2020     Digital Assets, News

Payments processor Square won the US patent number 10,540,639 titled “cryptocurrency payment network” for a new network that could seamlessly process crypto-to-fiat transactions and the reverse. The transactions would occur…