Nielsen has turned down an offer that they believe was an “unsolicited” buyout proposal from a private equity consortium. The data and market measurement firm states that the $25.40 per share offer “significantly undervalues” what it believes they are worth.
In addition, the board also added that based on feedback from WindAcre, one of Nielsen’s largest shareholders, it decided that the transaction would be “highly unlikely” to obtain shareholder approval.
“We continue to have strong confidence in the management team and Nielsen’s strategy to create long-term value for shareholders,” Nielsen Chairman James A. Attwood in a statement, per Variety.
“We are always open to exploring any avenue to create value for shareholders, but the Board is in agreement with WindAcre, one of our largest shareholders, that the Consortium’s proposal significantly undervalues the Company. Further reflecting our confidence in the Company, we plan to commence share repurchases, which we expect to be an important element of our ongoing balanced capital allocation strategy.”
Over the past few months, Nielsen has been on the receiving end of criticism from TV Networks and their companies. These parties have grown disappointed with Nielsen’s capability to calculate viewers who may watch their favorite shows through digital means such as mobile screens and streaming video.
The Nielsen board declared it was moving ahead with a previously authorized $1 billion share repurchase program. It plans to start buying back its stock after reporting first-quarter earnings on April 21.
Eduardo Razo is the Assistant Content Editor for BNM, which includes writing daily news stories on the news media industry. He can be found on Twitter @eddierazo_ or you can reach him by email at eddie1991razo@gmail.com.
