United States  

Celebrating 10 Years of Trusted News Discovery
One News Page
> >

Nielsen to Spin Off Global Connect Retail-Measurement Unit as Standalone Company

The Wrap Thursday, 7 November 2019 ()
Nielsen to Spin Off Global Connect Retail-Measurement Unit as Standalone CompanyFollowing a strategic review, Nielsen shared on Thursday it plans to spin off its Global Connect business, which measures retail sales, into a standalone publicly traded corporation. The company’s media business, the one that measures TV ratings, will remain under the purview of CEO David Kenny.

“Nielsen has two strong and global franchises — Global Media and Global Connect. Following an extensive review process, which included an in-depth analysis of our businesses, strategies and market opportunities, the board concluded that separating into two independent, publicly traded companies is the best path to position each business for long term success and maximize value creation,” said James Attwood, the chair of Nielsen’s board of the directors and the man who led the strategic review.

“As independent companies, both Nielsen — the Global Media business — and the new company consisting of Global Connect will enjoy added flexibility and further strengthen their paths toward a new phase of growth, productivity and industry leadership,” he continued.

*Also Read:* Discovery Beats Wall Street's Earnings Mark for Q3 as TLC Continues to Roll

Nielsen will drop its quarterly cash dividend from 35 cents per share to 6 cents per share as part of the split.

The decision comes after Elliott Management, one of Nielsen’s largest shareholders, has been pushing the company to seek a buyout from a larger firm, according to CNBC.

With Kenny already pegged to remain as CEO of Nielsen’s media business, the company has started looking for a new CEO to lead its Global Connect business. Kenny, in a statement accompanying the announcement, said splitting the company “will best position” each company to serve its clients.

“Since beginning the strategic review, Nielsen has evolved significantly. We are building a track record of execution, led by improved operational and financial discipline, and we have confidence in the path forward for each business,” Kenny said. “As two independent companies, we can better drive decision making with velocity and push key initiatives to accelerate performance enhancements of each business.”

*Also Read:* Why Nielsen Is Now Measuring Amazon and What That Means for New Streaming Services

Nielsen looked to drive home the key differences between its media business and Global Connect business in its announcement. The company’s global media operation is the “arbiter of truth for media markets,” the company said in a statement, and “provides media and advertising clients with unbiased and reliable metrics that create the shared understanding of the industry required for markets to function.”

Global Connect, meanwhile, gives “accurate, actionable information and a complete picture of the complex and changing marketplace that brands need to innovate and grow their businesses,” according to Nielsen, through its internal data and tools.

*Also Read:* 'El Camino: A Breaking Bad Movie' Was Watched by More Than 25 Million Households in Its First Week, Netflix Says

Nielsen’s plans to split its business were announced after the company posted its third quarter earnings. The company topped Wall Street’s forecasts for Q3 earnings, posting 51 cents earnings per share compared to the 42 cents EPS analysts projected. Its revenue increased 1% year-over-year to $1.62 billion, which matched analyst forecasts.

The company’s stock price took a hit in early trading, dropping 10.50% to about $18 per share.

*Related stories from TheWrap:*

Why Nielsen Is Now Measuring Amazon and What That Means for New Streaming Services

Nielsen Is Now Measuring Amazon: See Premiere TV Ratings for 'The Boys'

'El Camino: A Breaking Bad Movie' Draws 6.5 Million Viewers During Its First Weekend, Nielsen Says

Recent related videos from verified sources

Aurora Cannabis Joins The Pot Stock Earnings Miss Club [Video]Aurora Cannabis Joins The Pot Stock Earnings Miss Club

Aurora Cannabis is the newest member of the pot-stocks earnings-miss club. The Canadian recreational cannabis company late on Thursday reported quarterly earnings and sales that missed analysts'..

Credit: The Street     Duration: 01:53Published

McDonald's Earnings Weren't All Bad -- Chew on These 2 Positives [Video]McDonald's Earnings Weren't All Bad -- Chew on These 2 Positives

McDonald's investors weren't feasting on the stock post earnings, but there were two big positives that reflect important strides the company is making. The stock was falling 3.32% to $202.89..

Credit: The Street     Duration: 01:24Published

Recent related news from verified sources

NexTech AR links up with LivePerson to weave together augmented reality with retail consumer messaging

NexTech AR Solutions Corp (CSE:NTAR) (OTCMKTS:NEXCF) has partnered with “conversational commerce” company LivePerson Inc (NASDAQ:LPSN) to combine the...
Proactive Investors

Newgioco reaps benefits of gaming revenue surge and turns profit from operations in 3Q

Newgioco Group Inc (OTCQB:NWGI), the global gaming technology group, saw its gaming revenue pick up in its most recent nine-month reporting period and turned a...
Proactive Investors

You Might Like

Tweets about this

Environmentally friendly: One News Page is hosted on servers powered solely by renewable energy
© 2019 One News Page Ltd. All Rights Reserved.
About us  |  Contact us  |  Disclaimer  |  Press Room  |  Terms & Conditions  |  Content Accreditation
 RSS  |  News for my Website  |  Free news search widget  |  In the News  |  DMCA / Content Removal  |  Privacy & Data Protection Policy
How are we doing? FeedbackSend us your feedback  |   LIKE us on Facebook   FOLLOW us on Twitter  •  FOLLOW us on Pinterest
One News® is a registered trademark of One News Page Ltd.