The global measurement and data analytics company will separate into two publicly traded companies – a global media business and a global connect business.
Nielsen Holdings Plc announced the impending split a year after its initiated strategic review. The two entities are the Global Media and Global Connect. Global media is focused on television and digital measurement while global connect is concerned with retail and goods firms. While the split isn’t yet official, the two entities will continue on as separate Nielsen brands.
David Kenny, Nielsen’s Chief Executive Officer said that the results of their review process, which included an in-depth analysis of their business, was the catalyst for the decision to split. The split is their best option moving forward to maximize their value creation and to expand their company further. He further added that separating the two companies will serve the needs of Nielsen’s clients and will address the changing dynamics in the marketplace.
Despite the change, the company assured their employees that there will be no job losses in any of its market. The said separation process will take nine to twelve months to finish.
Nielsen’s Q3 report
Similar to Google’s parent company, Nielsen Connect’s revenues also suffered a minor decrease. Reportedly it’s sank by 2.2%. The measure business also lost 2.8% to $530 million and its Activate unit lost 1% to $216 million. The company said that the loss was due to “the write-down of $1 billion in connection with the goodwill of its Connected business.” However, the company seems to be making improvements as its shares went up to 4% in premarket trading last Thursday.
Nielsen moving forward
Kenny will continue to act as the CEO of the Global Connect business after the separation. Under Kenny’s continued leadership, Nielsen plans to allow each company to focus on its growth, serve their clients, and attract the right investor base.
The company is also aiming to transition its legacy media ratings to streaming and digital media. Kenny is said to be pushing forward with their digital initiative plans to produce a true currency quality.