Nielsen Holdings Plc (NYSE: NLSN) budged higher on a Wall Street Journal story saying activist investor Elliott Management Corp has taken a large stake in Nielsen as it plans to push the TV-ratings company to sell itself,
The Journal said Sunday Elliott had accumulated an 8% stake, which could be worth at least $640 million, in Nielsen.
Nielsen is known for its television ratings that are used to determine ad rates for traditional TV commercials.
The Journal story went on to say Elliott believes that Nielsen’s "buy" segment, which measures retail and consumer behavior, has failed to keep up with competitors like market research company IRI.
A spokeswoman from Nielsen told WSJ that the board welcomes the views of its owners, including Elliott, as it continues to evaluate how to best position the business.
Elliott, which has been launching campaigns at a blistering pace this year, could unveil the new effort as soon as Monday. Multiple private-equity firms already have expressed interest in Nielsen.
Nielsen’s stock price tumbled 25% in a single day last month after the company reported a weak second quarter and lowered its revenue estimates for the year.
Chief Financial Officer Jamere Jackson said in July the second quarter "was one of the most challenging quarters for our business in over a decade." He cited challenging conditions for consumer-packaged-goods clients, which hurt its "buy" business, which measures retail and consumer behavior.
Shares hiked $3.09, or 14.1%, to $25.06.
