|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||10.35 - 10.55|
|52-week range||9.18 - 14.45|
|Beta (3Y monthly)||N/A|
|PE ratio (TTM)||N/A|
|Forward dividend & yield||N/A (N/A)|
|1y target est||N/A|
(Bloomberg) -- Bain Capital agreed to buy 60% of WPP Plc’s market research unit Kantar, bringing the ad group $3.1 billion to cut debt and return funds to investors hit by a share price slump. The private equity firm entered exclusive talks with WPP last week after beating out rival buyout companies in an auction. WPP will retain around 60% of the proceeds to reduce borrowing to the low end of a target range and return the rest to shareholders, it said in a statement. The price is in line with Kantar’s $4 billion valuation that Bloomberg reported when the exclusive talks began. Bain was competing against Apollo Global Management, Platinum Equity and Vista Equity Partners in the final round of bidding, people familiar with the matter said previously.What Bloomberg Intelligence Says“WPP could tender a sizable chunk of its debt stack after receiving cash from the potential Kantar disposal, which is expected to complete in the short term.”--Aidan Cheslin, credit analyst Click here to read the researchWPP shares rose 0.6% as of 9:11 a.m. in London on Friday. The stock lost more than a third of its value last year, when company founder Martin Sorrell resigned after a misconduct probe and the company lost accounts with major clients. WPP has struggled to adapt its global network of more than 100 agencies to a shift in client spending toward digital marketing and away from the TV and billboard ads where the group is traditionally strong. Web giants such as Facebook Inc. and Amazon.com Inc. are cutting out agencies and working directly with brands. The Kantar sale is part of new Chief Executive Officer Mark Read’s push to cut debt and simplify the company. Sorrell had strongly advocated keeping Kantar, which analysts say has underperformed the rest of WPP in recent years. Kantar’s CEO Eric Salama said last month that a new majority owner could look for ways to speed up its time to market for data and services, drive growth with existing clients and move its business more into digital activities.“It’s not just a money thing. The people at Bain bring real operational expertise that will really help us,” Salama told reporters on a call after the deal was announced. (Adds analyst comment in fourth paragraph, executive comment at end.)To contact the reporter on this story: Thomas Pfeiffer in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Kenneth Wong at email@example.com, Stefan Nicola, John LauermanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- WPP Plc is planning to announce the sale of a majority stake in its Kantar market-research business to Bain Capital within days, people familiar with the matter said. Bain has been discussing the purchase of a 60% stake, one of the people said, asking not to be identified because the deliberations are private. The parties are finalizing terms of an agreement and are preparing to make an announcement as soon as the next two days, the people said. Representatives for WPP and Bain declined to comment. An announcement could still be postponed, the people said. The private equity firm entered into exclusive talks for the business last week after beating out rival buyout companies. The talks valued Kantar at about $4 billion, WPP said at the time. The sale is part of WPP Chief Executive Officer Mark Read’s push to cut debt and simplify the global ad agency network after ditching his predecessor’s acquisition-fueled growth strategy. Read has said previously he’d like to keep a 25% to 40% stake in Kantar and will use some of the proceeds to offset earnings dilution. WPP shares were down 0.2% as of 8:07 a.m. in London. The stock is up 16% so far this year. The advertising industry is grappling with a shift to digital ads, which are set to make up the majority of ad spending for the first time this year and are displacing more traditional media, according to research from Magna Global. Deals for advertising companies are up about 21% in the past 12 months from the year earlier, with bidders spending about $16.5 billion, according to data compiled by Bloomberg. (Adds WPP shares in sixth paragraph.)\--With assistance from Sarah Syed.To contact the reporters on this story: Dinesh Nair in London at firstname.lastname@example.org;Joe Mayes in London at email@example.com;Aaron Kirchfeld in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Dinesh Nair at email@example.com, ;Rebecca Penty at firstname.lastname@example.org, Thomas Pfeiffer, Amy ThomsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Bain Capital is in exclusive talks to buy a majority stake in WPP Plc’s Kantar unit in a deal valuing the market-research business at about $4 billion including debt.The buyout firm’s proposal is subject to negotiation and there’s no guarantee that talks will result in a deal, WPP said in a statement on Monday, which confirmed an earlier Bloomberg News report. The company was competing against Apollo Global Management, Platinum Equity and Vista Equity Partners in the final round of bidding, people familiar with the auction said previously.The Kantar sale is part of WPP Chief Executive Officer Mark Read’s push to cut debt and simplify the global ad agency network after ditching his predecessor Martin Sorrell’s acquisition-fueled growth strategy.The price being discussed appears to be in line with expectations and the exclusive talks should give confidence that a deal will be completed, allowing WPP to significantly reduce debt, Liberum analysts led by Ian Whittaker wrote in a research note.WPP shares were up 0.3% as of 8:09 a.m. in London on Tuesday. The stock is up 20% so far this year.Read is focusing on improving WPP’s digital marketing skills after losing work with some key consumer goods clients. The owner of agencies including Ogilvy and Wunderman Thompson has struggled with the shift to online marketing and faces a growing threat from Facebook Inc. and Alphabet Inc.’s Google.Sorrell had strongly advocated keeping Kantar, which analysts say has underperformed the rest of WPP in recent years. The bidders are comfortable with Kantar’s basic business model and want to speed up its delivery of data and services and add more digital activities, its CEO Eric Salama said in an interview last month.Read has said he’d like to keep a 25% to 40% stake and will use some of the proceeds to offset earnings dilution.Click here to read more about WPP’s last financial results.WPP also said Monday it was selling its 25% stake in sports-marketing agency Chime Communications Ltd. to majority shareholder Providence for 54.4 million pounds ($68.8 million).Bain is working with Credit Suisse Group AG and London-based boutique advisory firm Canson Capital Partners. Goldman Sachs Group Inc. and Ardea Partners are advising WPP on the sale. (Adds analyst comment in fourth paragraph.)\--With assistance from Joe Mayes, David Hellier, Liana Baker and Ruth David.To contact the reporters on this story: Dinesh Nair in London at email@example.com;Sarah Syed in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Ben Scent at email@example.com, Thomas Pfeiffer, Rebecca PentyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
WPP said on Monday it had sold the stake to Chime's majority shareholder Providence Equity Partners, with the potential for additional payout amounts based on the future value of Chime. WPP did not disclose its stake in Chime, but a Sunday Times report said it is expected to offload 25% of its holding to Providence, which already owns 75%. Read replaced founder Martin Sorrell during a period of turmoil in 2018 and set out his vision after a loss of key clients led to several profit warnings and a slump in its market value.
WPP Plc said it sold its minority stake in sports, entertainment and communications company Chime for 54.4 million pounds ($68.91 million), as the world's biggest advertising company looks to sell non-core assets and return to growth. WPP said on Monday it had sold the stake to Chime's majority shareholder Providence Equity Partners, with the potential for additional payout amounts based on the future value of Chime. WPP did not disclose its stake in Chime, but a Sunday Times report https://www.thetimes.co.uk/article/wpp-under-mark-read-offloads-stake-in-chime-0gx38wv7m said it is expected to offload 25% of its holding to Providence, which already owns 75%.
(Bloomberg) -- Facebook Inc. and Google have come to dominate the beach front at the advertising industry’s biggest annual gathering in Cannes on the French Riviera, a sign of their ever-growing power in the world of marketing. This year, they face their toughest scrutiny yet.The tech giants have pulled billions of ad dollars away from traditional media as consumers flocked to their platforms. Now a proliferation of objectionable content on their sites threatens to taint the global brands that advertise there. So expect marketing managers to put Silicon Valley executives on the spot at Cannes Lions, a week of events, meetings, speeches and parties by the Mediterranean.The event starting Monday is the ad industry’s Oscars. Executives vie for awards for the most creative campaigns, sign deals and talk shop at lavish parties on the beach. Celebrities will add some glamor, from Grammy-award winner John Legend and film director Alfonso Cuaron to Hollywood star Jeff Goldblum with his jazz band.With the tech giants distracted by the problem of toxic content and concerns over data privacy, the traditional ad agency networks such as WPP Plc and Omnicom Group Inc. will be trying to reassert themselves and recoup marketing work lost in recent years to digital rivals and global consultancies Accenture Plc and Deloitte LLP.Here’s more of what to expect in Cannes:Tech Giants Under ScrutinyFacebook Chief Operating Officer Sheryl Sandberg, Google executive Matt Brittin and YouTube’s vice-president for Europe, Middle East and Africa Cecile Frot-Coutaz are due to speak. Marketing managers want to know what they’re doing about their brands showing up alongside fake news, a live-streamed shooting massacre on Facebook, images of self-harm on Instagram and pedophile commentary on YouTube.“It goes far beyond the direct implications for the brand. It’s actually, what are we funding? There’s much more of an appetite for these platforms to be engaging,” said Stephan Loerke, head of the World Federation of Advertisers, which represents 90 percent of the world’s marketing communication spend.Mad Men Fight BackThe global ad networks will try to regain their swagger after budget cuts at big brands and incursions by new rivals. London-based WPP, undergoing a reboot under new Chief Executive Officer Mark Read, will set up its first stand on the Cannes beach -- a spot typically occupied by companies like Facebook, Alphabet Inc. unit Google and Twitter Inc. -- in a nod to Read’s digital makeover of the ad network. Paris-based Publicis Groupe SA returns to Cannes after skipping last year’s event to spend the money building a new artificial intelligence platform.“We’ve had the year of slightly depressed navel-gazing and we’re going to move into the year of forward-looking, optimistic yet pragmatic problem solving,” said Jim Prior, CEO of Superunion, a brand agency owned by WPP. “It’s going to be sleeves rolled up, looking forward, let’s get on with this.”Climate ChangeHow does an industry whose job is to propel global consumption respond to panic over climate change and environmental destruction? The question is now unavoidable in light of the Extinction Rebellion movement, the international fame of Swedish activist Greta Thunberg and the Netflix documentary series “Our Planet.”“It’s moved from being a zealot’s concern to absolutely mainstream,” said Mark Lund, U.K. Group CEO of McCann Worldgroup, a creative agency owned by the Interpublic Group of Cos. “Brands would be stupid if they didn’t have some view on what it meant for them and their role in ameliorating the problem.”Creativity and DataCannes Lions started as a “festival of creativity” for people who make ads to share ideas and admire each other’s work. It’s morphed into a global event attended by over 10,000 people involved in every aspect of marketing, from data-crunchers who analyze consumer behavior to media buyers trading ad space. This year’s event seeks to bridge the creative and tech worlds to improve collaboration. It includes masterclasses from the likes of Amazon.com Inc., Microsoft Corp. and Adobe Inc. on how to use their data tools.“It hasn’t always been understood why bringing technology to Cannes is so important,” said Wenda Harris Millard, vice chairman of MediaLink, which is organizing the program. “The tech guys are also understanding that creativity only makes them better and more useful.”Sorrell ReturnsAfter a contentious exit from WPP in 2018, the company’s outspoken founder Martin Sorrell is busy expanding his new ad firm S4 Capital Plc and will be back in the Cannes spotlight. Sorrell retains his traditional Friday slot on the main stage, where he’ll be in conversation with Marian Goodell, chief executive officer of the Burning Man cultural organization. He’ll also be chatting with Accenture Interactive CEO Brian Whipple in an Irish pub. Sorrell is back on the acquisition trail, hunting for a data company to add to his nascent business.To contact the reporter on this story: Joe Mayes in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Rebecca Penty at email@example.com, Thomas PfeifferFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
It was just an entertaining ad: Robert de Niro turns up as a gangster to pull off a Goodfellas-style heist. For all the programmatic data ad agencies use, the creative part still matters. Beancounters such as Accenture Plc, Deloitte Consulting LLC and Ernst & Young LLP have in recent years wrested business away from adland’s incumbents – WPP Plc, Publicis Groupe SA and Omnicom Group Inc. – because of their deep digital know-how. But if they are to grow further, they are going to need to think more seriously about expanding their creative offering, where they have scant presence right now.
(Reuters) - WPP Plc, the world's biggest advertising company, said on Tuesday it appointed Microsoft Corp's UK chief executive officer, Cindy Rose, as a non-executive director. Rose, who will join WPP ...
It has examined consulting firms like Deloitte LLP and PricewaterhouseCoopers LLP, who’ve been stealing so much ad business by offering a “full-service” model (doing everything from product development to branding and e-commerce), and it’s copied them. By some measures, Publicis added more new business last year than any of its traditional Madison Avenue peers. Omnicom slipped 5 percent and Interpublic Group Inc. 5.6 percent in the U.S. after their French rival reported its earnings on Wednesday. If even Publicis is struggling to replace business, was the implication, then the portents should be just as bad for advertising companies that have been slower to adapt to the changes brought about by Facebook and Google becoming advertising’s preferred platforms.
** OptimizeRX down ~16 pct at $9.77 premarket as top investor WPP Plc divests its ~18 pct stake in the digital health messaging firm ** OPRX among biggest pct losers across U.S. markets before the bell ...
** OptimizeRX down ~15 pct at $9.90 premarket as top investor WPP Plc looks to divest its ~18 pct stake in the digital health messaging firm ** OPRX among biggest pct losers across U.S. markets ** After ...
It's just a smaller one than investors might reasonably have expected. Based on predicted earnings, a brief analysis suggests that would boost the 2022 operating profit margin from the 13 percent that analysts currently expect to closer to 15 percent. Compare that with archrival Publicis Groupe SA, which announced its own savings plan in March that is both bigger and faster. The French firm expects to reduce costs by 450 million euros ($512 million) by the end of 2020.
(Bloomberg) -- WPP Plc Chief Executive Officer Mark Read will put online ad technology and data intelligence at the heart of a turnaround plan for the world’s biggest advertising group on Tuesday in his most detailed strategy update since the departure of company founder Martin Sorrell.