Nielsen (NLSN) to separate into two publicly traded corporations
The corporate stated it will spin off its World Join enterprise from its World Media unit.
“Each the World Media and World Join companies are independently important to the industries they serve, however every enterprise has distinctive dynamics,” CEO David Kenny stated in an announcement. “Our determination to separate them marks a milestone in our strategic evolution and can finest place every to serve the particular wants of their shoppers and efficiently handle quickly altering dynamics within the market.”
As a part of the cut up, the corporate plans to chop its dividend. Starting with the corporate’s subsequent dividend fee in December 2019, Nielsen will scale back its quarterly money dividend fee to six cents a share from 35 cents a share. The dividend is payable on December 5, 2019, to shareholders of file on the shut of enterprise on November 21, 2019.
Activist hedge fund Elliott Administration, which is likely one of the firm’s largest shareholders, had been pushing Nielsen to discover a purchaser. Nielsen stated in September of 2018 that it was working with funding banks JPMorgan Chase and Guggenheim Securities, in addition to regulation agency Wachtell, Lipton, Rosen & Katz, on an “expanded” assessment of strategic options, together with a sale of the corporate.
Nielsen expects the deal to shut in 9 to 12 months.
On Thursday, Elliott stated it supported Nielsen’s determination to separate in two.
“Separating into two corporations represents the perfect path ahead for Nielsen’s enterprise and its shareholders, and we consider it is going to result in substantial worth creation,” Elliott accomplice Jesse Cohn stated in an announcement. “By separating into two unbiased corporations, Nielsen is healthier capable of place each its media and retail measurement franchises for long-term success with differential funding, profitability, capital return and strategic frameworks.”
Following the separation, Kenny will keep on as chief govt of the World Media enterprise and a search is on for a CEO for the World Join enterprise.
Kenny joined Nielsen after serving as the top of IBM’s Watson AI platform and portfolio enterprise. He was additionally previously chairman and CEO of the Climate Co., a portion of which he bought to IBM. Kenny spent a decade at Bain Capital from 1987 to 1997.
Individually, Nielsen boosted its full-year earnings steering and reported a loss for the third quarter. The corporate raised its full-year earnings steering to $1.77 to $1.83 a share, up from its earlier forecast of $1.70 to $1.80 per share.
Nielsen reported a third-quarter adjusted lack of 51 cents a share on income of $1.62 billion.
The corporate posted a web lack of $472 million, or $1.33 a share, in contrast with web earnings of $96 million, or 27 cents a share, within the year-earlier interval.
—CNBC’s Alex Sherman contributed to this report.