Dutch publishing giant VNU NV, through its U.S. subsidiary VNU USA
Inc., said Monday it will acquire television ratings firm Nielsen Media Research Inc. in a deal
valued at $2.7 billion.
A Nielsen exec was later quoted as saying that the companies may plan an IPO
for the Nielsen//NetRatings Web
measurement service venture with NetRatings Inc.
VNU will pay $37.75 per share of Nielsen common stock. VNU will also take on
$200,000 in Nielsen’s debt.
The deal, already approved by the board of directors at both companies, is
expected to close this fall.
Nielsen, which is best known for its television audience measurement and also
tracks information on advertising and Internet usage, employs 3,300 workers
and had revenues of $402 million last year.
VNU publishes newspapers, consumer and business magazines, textbooks,
offers marketing information services and organizes trade shows. VNU
employes about 15,000 people and had annual revenues last year of more than
$2.8 billion.
“This is an event of transforming importance for both VNU and for Nielsen
Media Research,” said John A. Dimling, president and chief executive officer
for Nielsen Media Research. “For VNU, the merger provides opportunities for
growth across the entire media landscape, including traditional and
interactive media and Internet services. For Nielsen Media Research, the
alliance provides opportunities to grow our core business in partnership with
VNU in the United States and Canada, as well as opportunities for global
expansion of our research and measurement business.”
“An IPO (for Nielsen//Netratings) will be in the not too distant future,” VNU
USA Chairman Jerry Hobbs told journalists at a press conference about VNU’s
plan to buy Nielsen. “While nothing is absolutely decided, there’s an
indication that we’ll move in that direction, probably within a year’s time.”
VNU said it estimates Nielsen//NetRatings is worth about the same as rival
Media Metrix Inc., which has a market value of about $650 million. The
market for Internet audience measurement services is forecast to reach $100
million by 2003 from $19 million last year, according to market researcher
Forrester Research Inc.
Nielsen has just under 14 percent of the venture now, and plans to spend $70
million to raise that stake to 54 percent. NetRatings is seeking to sell
about a quarter of the venture, Hobbs said.
