Nielsen to Go Private After $10.06 Billion Buyout

Options volume is running at nine times the intraday average

Digital Content Manager
Mar 29, 2022 at 10:21 AM
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Nielsen Holdings PLC (NYSE:NLSNis surging today, last seen up 21.6% to trade at $26.99. This bull gap came after the data company said it accepted a $10.06 billion buyout offer from Brookfield Asset Management (BAM). The buyout, which will take Nielsen private, offers $28 per share, which is a 26% premium to the stock's last close. 

Options traders are blasting Nielsen stock in response. So far, 2,431 calls and 2,056 puts have crossed the tape, which is nine times what is typically seen at this point. Most popular is the May 23 call, followed by the April 26 put, with positions currently being opened at the latter.

Analysts are pessimistic toward Nielsen stock, with four of the six in question calling it a tepid "hold" or worse, while the remaining two said "strong buy." And while shorts have started to hit the exits -- short interest is down 8% in the last two reporting periods -- the 31.48 million shares sold short still make 8.8% of the stock' available float, or over one week's worth of pent-up buying power.

Today's pop has Nielsen stock trading at its highest level since June. The shares had cooled to the $12 level in recent weeks, after the $26 level rejected NLSN's rally off a March 24, annual low of $16.02. Year-to-date, the security now sports an 8.3% lead.



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