NEW YORK--(BUSINESS WIRE)--Elliott Management Corporation (“Elliott”), one of the largest shareholders of Nielsen Holdings PLC (the “Company” or “Nielsen”), released a statement supporting Nielsen’s separation into two independent companies.
Over the past year, Nielsen’s Board conducted a full strategic review, evaluating all options for the Company. During this time, Nielsen significantly improved operational performance across both businesses. After multiple quarters of accelerating fundamental performance, both of Nielsen’s businesses today are faster-growing, more profitable, more focused, better positioned, and meaningfully more valuable than they were at the start of the review. As a result, we and the Company now believe that the optimal path forward is to separate the Company into two premier global businesses:
- Media: The market-leading media measurement business with a mid-single-digit growth outlook, mid-40% EBITDA margin and clear path to leadership in cross-platform measurement
- Connect: The leader in retail sales measurement with an incomparable global footprint, low-single-digit growth outlook and path to significant margin expansion
In the statement, Elliott Partner Jesse Cohn supported Nielsen Chairman James Attwood, CEO David Kenny, CFO Dave Anderson, and the entire Board and management team on the Company’s decision:
“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. 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.
“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. 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.
“As large shareholders, we look forward to continuing to engage closely with David, Dave and the entire team as they execute on this separation, continue to drive growth and operational improvement and highlight the value of both franchises.”
Elliott Management Corporation manages two multi-strategy funds which combined have approximately $38 billion of assets under management. Its flagship fund, Elliott Associates, L.P., was founded in 1977, making it one of the oldest funds of its kind under continuous management. The Elliott funds’ investors include pension plans, sovereign wealth funds, endowments, foundations, funds-of-funds, high net worth individuals and families, and employees of the firm.