Nielsen is being bought out for $ 16 billion, including debt, about a week after the media measurement company turned down a smaller bid earlier this month. The visibility of data collected by Nielsen plays a big role in determining where billions of dollars are spent on advertising each year. The company itself has annual global revenues of approximately $ 3.5 billion. GET FOX BUSINESS IN ENGINE BY CLICKING HERE A group of private equity investors led by Evergreen Coast Capital Corp., a subsidiary of Elliott Investment Management LP and Brookfield Business Partners LP along with institutional partners will pay $ 28 for each outstanding Nielsen share. Brookfield Business Partners will invest approximately $ 2.65 billion in preferred stock, convertible into 45% of Nielsen’s equity. The share capital issue of the deal is worth just over $ 10 billion in cash, with the rest of the debt held by Nielsen. Brookfield said Tuesday it expects to invest about $ 600 million, with the rest funded by institutional partners. Friends relaxing on living room couch and watching movie on TV (iStock) New York-based Nielsen Holdings Plc rejected the group’s previous offer, saying it had significantly underestimated the business. That offer was worth $ 25.40 a share, or about $ 9 billion before the debt was taken out. After accepting the revised, Nielsen shares jumped 22% in the opening. The stock closed regular trading with a rise of 20.3% to $ 26.72 per share. Nielsen has been criticized for failing to create new time-saving methods for people watching streaming services such as Netflix or Hulu. It has become a much more complicated task as people now load content on phones, tablets and other smart devices. Ticker Security Last change% NLSN NIELSEN HOLDINGS PLC 26.73 +4.53 + 20.41% Nielsen is working to address these complaints, and a new media measurement tool is expected to be released by the end of the year. Nielsen One, according to the company, can offer more comparable and comprehensive measurements on platforms ranging from traditional TVs to many other digital and streaming services. Nielsen’s board voted unanimously in favor of the revised offer and the company will be privatized if the transaction is closed. CLICK HERE TO READ MORE ABOUT FOX BUSINESS However, there is a 45-day sales period during which Nielsen can look at and accept other offers, but breach of the private equity group agreement will result in a $ 102 million termination fee. The deal is expected to close in the second half of this year. Approval from Nielsen shareholders and regulators is still required.
