Analysts say VNU's board has been disappointed that no rival bids have emerged to better the $8.8 billion non-binding offer made by the consortium, which is expected to break up VNU and sell its assets piecemeal. erinMedia founder Frank Maggio has already expressed interest in acquiring Nielsen Media Research, Nielsen's stake in NetRatings, and VNU's stake in Scarborough Research. WPP Chairman-CEO Martin Sorrell is also believed to be interested in acquiring one or more of the VNU research assets. VNU's AGB unit currently has a ratings joint venture with Nielsen Media Research outside the U.S.
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VNU, which only recently had been seen as a suitor, became a takeover candidate when its management team was thrown into disarray following its ill-fated attempt to acquire healthcare industry researcher IMS Health, in a deal that some shareholders considered overvalued and not in line with VNU's strategic direction. The deal, which was championed by VNU Chairman Ron van den Bergh, led to a shareholder revolt that ultimately deposed van den Bergh and set the company in play.
The fact that an IMS deal was the trigger for those events is truly ironic, because by acquiring IMS, VNU had sought to recreate a company that operated under Dun & Bradstreet a decade ago whose assets were comprised of IMS, Nielsen Media Research and ACNielsen. That company was broken into three separately traded companies, two of which, Nielsen and ACNielsen, have since been acquired by VNU.
Among those assets, Nielsen has been the cash cow and greatest contributor to VNU's cash flow and profits, and is deemed to be an especially desirable acquisition target to players both inside the U.S. media research field, as well as those looking to move into the business.