Nielsen Holdings PLC (NYSE: NLSN) is headed up early on in the pre-market hours this morning, and for good reason. The company announced this morning that it is exploring strategic options, including but not limited to, the sale of its core business. Of course, the news led to excitement among investors, sending the stock on a run for the top. Today, we’ll talk about:
- The exploration of strategic options;
- what we’re seeing from NLSN as a result; and
- what we’ll be watching for with regard to the stock ahead.
NLSN Heads Up On Strategic Options Exploration
As mentioned above, Nielsen is having a strong start to the trading session this morning after announcing a strategic options exploration. In a press release issued early this morning, the company said that it has expanded the scope of its strategic review of the company’s Buy segment. The expanded scope includes a board review of strategic alternatives for the company and its businesses.
In the release, NLSN said that the expanded review now includes an assessment of a broad range of options. These options include continuing to operate as a public, independent company, a separation of either Nielsen’s Buy or Watch segment, or the sale of the company as a whole. In a statement, James Attwood, executive chairman at NLSN, had the following to offer:
The Board continues to support the company’s strategic priorities, including Total Audience, the Connected System and our operational transformation, including cost out initiatives and consolidations designed to increase agility. However, the Board believes that a broad review of strategic alternatives is in the best interest of the company and its shareholders… As the Board conducts its review, we and our valued associates remain focused on providing clients with the most complete understanding of what consumers watch and buy with mission critical data that enables markets around the world to act faster, more efficiently and with greater confidence.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Nielsen Holdings, the news proved to be overwhelmingly positive. After all, the strategic reiview could lead to the potential sale of the company. Of course, if this did happen, it would have to happen at a strong premium. So, it comes as no surprise that excited investors are sending the stock on a run for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:00), NLSN is trading at $27.50 per share after a gain of $1.12 per share or 4.25% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on NLSN. In particular, we’re interested in following the story surrounding the company’s continued work with regard to the strategic review of options. Nonetheless, we’ll continue to keep a close eye on the news and bring it to you as it breaks!
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