• by Joe Mandese  @mp_joemandese, December 9, 2005

The long winding road of the world's largest media and marketing research company may be about to take another twist. At least two consortiums of leading private equity and buyout firms are said to be mounting plans to acquire VNU, and possibly busting it up.

That would mark another ironic chapter in a company comprised of assets like Nielsen Media Research and ACNielsen that have a history of being pulled together and broken up. In fact, it was VNU's attempt to acquire IMS Health, a company that got spun-off with Nielsen Media Research and ACNielsen from Dun & Bradstreet a decade ago, that led to a recent shareholder revolt that has hobbled VNU's management, opening the door for a takeover and breakup.

Following that revolt, VNU Chairman-CEO Rob van den Bergh announced plans to step down and the search for a new chief has begun. The turmoil has bred speculation that VNU may itself go into play, and The Wall Street Journal late Thursday reported that two consortiums are contemplating bids: One that includes Apax Partners Worldwide LLP; the Blackstone Group International Ltd.; Carlyle Group; Kohlberg Kravis Roberts & Co.; Permira Advisers; Thomas H. Lee Partners; and Alpinvest Partners NV; the other comprised of Bain Capital, Texas Pacific Group and Warburg Pincus.

The paper speculated a bid could be mounted that would be greater than VNU's current market capitalization of $8 billion--the assumption being that the sale of its assets would be worth greater than the whole. The primary assets include Nielsen Media Research, ACNielsen, and VNU's business publications division, which includes trade magazines like Adweek, Billboard and The Hollywood Reporter.

Who might acquire those individual assets is bound to spark a new round of speculation. Madison Avenue giant WPP Group currently is involved in a joint venture with Nielsen Media Research outside the U.S., and WPP Chairman-CEO Martin Sorrell told analysts attending UBS' Media Week conference this week that he is happy with the results. Sorrell has made it clear that WPP would like to expand its marketing and media research holdings, and recently was part of a failed bid to acquire Aegis Group, which owns Synovate, one of the fastest growing companies in the sector.

VNU also is involved in two potential joint ventures with Arbitron Co. that would make it an interesting suitor for one or more of VNU's assets.