https://medium.com/alpha-beta-blog/the-private-equity-illusion-29a2527c05e4
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I think this is what happens when you work for a low growth public company. Companies with stagnant stock prices become targets for radical changes like going private. Shareholders want a return on their investment. It’s hard for me to knock it. When Nielsen went private in 2005 or 2006, shareholders got a 23% premium on their shares. The alternative was continued stagnation.
Why did Nielsen go private a decade or more ago? Wasn’t it doing well financially back then?
“I heard various leaders say many times that taking the company private would be good because removing the burden of reporting quarterly financials would allow us to invest in the long term”
Very true. In the Pacific we were fed the same garbage….obviously it was doctored to fool the employees worldwide and to sow false hope.
Evil ba----ds….they must have a special place in he-l for what they are doing.
It’s all about cashing in stock options after PE sells the company . Typically 5 years after acquisition. So I bristled after hearing DK saying that it was not a concern to him if PE bought Nielsen. He showed his true colors at that moment.
I heard various leaders say many times that taking the company private would be good because removing the burden of reporting quarterly financials would allow us to invest in the long term. Total BS. They are now doing the exact opposite - sacrificing the long term quality of Nielsen's products to make the financials look good.
Everyone should have a basic understanding on how PE's operate. And how Elliot has leveraged Nielsen's own assets to buy make the purchase on credit. Elliot anted way more than 10 percent of its own money which creates additional pressure to squeeze cash out of Nielsen quickly. The link cites Blackstone which was part of a consortium that bought Nielsen over ten years ago and we are still paying off that debt. Elliot, which is widely known as a ruthless bottom feeder, has moved in for sloppy seconds. When Elliot leaves, the debt load on Nielsen is going to be a heavy challenge. Despite what Karthik says, we are not positioned to be stronger company. Out leaders fully know this and are full of sht.