What happened
Shares of Nielsen Holdings (NLSN) charged sharply higher on Monday, surging as much as 47.1%. As of 2:56 p.m. ET, the stock was still up 32.3%.
The catalyst that sent the television ratings and data analytics platform higher was a rumor that the company could be taken private.
So what
Reports emerged today that a syndicate of private-equity companies are in "advanced talks" to acquire Nielsen for roughly $15 billion including debt, according to a report in The Wall Street Journal. The story also suggests that, while it isn't a done deal, an agreement could be completed within weeks, citing the oft-quoted "people familiar with the matter."
Image source: Getty Images.
Nielsen has long been synonymous with television ratings, providing viewership estimates that are the basis for traditional broadcast television advertising rates. However, in recent years, the growing adoption of streaming video and the secular decline of cable and traditional television viewing has fragmented the market, loosening Nielsen's grip on a market it once dominated.
The evolving television landscape has weighed heavily on Nielsen's stock price, which has shed more than two-thirds of its value over the past five years. The stock closed out last week at $17.51, a far cry from its heyday, when the stock hit a high above $55 back in 2016.
Now what
If the rumors turn out to be true, this could be a big win for Nielsen shareholders. The company ended last week with a market cap of roughly $6.3 billion and debt of $5.75 billion, pushing its enterprise value to more than $12 billion.
It's worth noting that the company has yet to confirm any potential deal, so this is still just rumors.
