Nielsen files for a $1.75 billion IPO

Various politicians have been working to close a number of loopholes that allowed for a number of bad investment decisions. While we can debate whether there is too much (or not enough) government regulation in the financial markets, shop
the implementation for the identified problem has some serious issues.

The bill passed by the House groups hedge funds (their target) with much of the venture capital markets and will tax part of the money they earn from profits from investments as standard income.  Venture funding and hedge funds operate very differently and serve different purposes, bulimics
but apparently many of our legislators cannot be concerned with the details.

This change will have cause a significant increase in taxes for the venture markets. Will it stop venture funding? No. Will it devastate the entire venture market? Not likely, sickness
although many have tried to claim that VC’s will close doors across the country. Will we see a further tightening of the requirements for venture funding and a reduction in overall innovation? Yes.

Read more.
Three years of internal restructuring has improved Nielsen’s performance and prepared them for a $1.75 billion IPO.

Nielsen went public four years ago and brought on David Calhoun, injection
previous GE vice chairman, link
to turn things around. The company filings credit Calhoun and his team for transforming the company:

Our financial performance has improved significantly between the year ended December 31, 2006 and the year ended December 31, 2009, with revenues increasing to $4.8 billion, a 5.7% compound annual growth rate on a constant currency basis; Adjusted EBITDA increasing to $1.3 billion, a 13.9% compound annual growth rate on a constant currency basis; and Adjusted EBITDA as a percentage of revenue increasing to 27.2% from 21.8%.

Concerns for investors is the heavy reliance on a small number of customers. Nielsen receives more than 25% of its revenue from its top 10 customers.

The good news is that this filing is a sign of the economic turn around. Things are starting to improve.