Nielsen Raises Up Planned IPO To $2.01 Billion
Talk of IPOs is in the air these days, as audience measurement company Nielsen is increasing the amount it wants to raise in a stock sale to $2.01 billion, according to its latest S-1 filing. Just two months ago, the company had planned to file for a $1.75 billion IPO. The move comes as several media companies are considering possible public offerings, including Hulu, which is reportedly just entering the talking stage with investment bankers.
Hulu’s early plans for a stock sale value the company at around $2 billion. A week ago, freelance aggregator Demand Media filed for an IPO. The company listed a “maximum offering price” of stock up to $125 million, though it didn’t say how much of a stake is actually up for sale.
While there’s some uncertainty about whether this is the right time for a stock sale—aside from the increasing downward pressure on stocks due to economic worries, the IPO market has been regarded as fairly soft. Plus, with some large stock sales looming, such as possible offerings from GM and Toys ‘R Us, investors might not have much of an appetite by the time Demand Media and Hulu come around.
Nielsen might not have as much trouble as those companies, since it’s such a long-established name, but it’s not without challenges. Nielsen was bought for roughly $10 billion four years by a group of PE firms including AlpInvest Partners, The Blackstone Group (BX: News ), The Carlyle Group, Hellman & Friedman, Kohlberg Kravis Roberts & Co. and Thomas H. Lee Partners. While analytics continues to be one of the brightest spots among media companies, the ad market is expected to remain weak compared to its high point of 2007 even in the most rosy scenarios.
That’s not to say Nielsen isn’t prepared for the weakness in the U.S. and Europe. In the S-1, Nielsen makes a point of saying that it is looking to build up its presence in emerging markets, which currently makes up about 17 percent of the company’s revenues.
The other challenge hanging over Nielsen is its debt of $8.42 billion, though that’s one of the things motivating the decision behind the IPO, as it plans to use some of the proceeds from the stock sale to pay that down.
{/exp:get_graph} {/exp:tweet_quote}