Head of the world’s largest advertising empire resigns

Martin Sorrell, chief executive officer of WPP Plc, pauses during a session on the opening day of the World Economic Forum (WEF) in Davos, Switzerland.

https://www.bloomberg.com/news/articles/2018-04-16/post-sorrell-wpp-breakup-theories-abound-selling-kantar-to-pr?utm_campaign=socialflow-organic&utm_medium=social&cmpid=socialflow-twitter-business&utm_content=business&utm_source=twitter

Martin Sorrell spent three decades building WPP Plc, the world’s largest advertising empire. His resignation is seen as potentially spurring a breakup.

The sudden exit of Sorrell, who held together the global network of more than 400 units, opens WPP up to reorganize and potentially attract bids for various divisions as its strategy shifts. Roberto Quarta, now interim executive chairman, says the company needs to optimize its portfolio. Here are five options WPP could consider to prune its reach and refocus, based on conversations with analysts and industry executives.

Kantar, WPP’s data management unit that gives companies insight on consumer trends, is the most obvious candidate for disposal, says Liberum analyst Ian Whittaker. While Sorrell was a strong advocate of keeping the division, Kantar’s revenues have consistently under-performed the group average and selling the business could raise 3.5 billion pounds ($5 billion), Whittaker said. Potential buyers would include marketing services firm Nielsen Holdings Plc or a private-equity shop.

WPP owns a suite of public relations firms, including Finsbury, Hill + Knowlton Strategies and Burson Marsteller. Profit margins are declining in PR and the sector has the weakest growth profile among WPP’s assets, says Alex DeGroote, a media analyst at Cenkos Securities. “WPP needs to sharpen its focus,” DeGroote says. “Ideally it wouldn’t have any PR and it wouldn’t have any market research.”

Under Sorrell, WPP bought minority stakes in an array of digital, media and marketing companies over his 32 years at the helm, including a 15 percent holding in ad-tech firm AppNexus Inc. and a slice of global youth media outlet Vice Media LLC. “He went around the world buying 20 percent of everything he found interesting,” says Richard Pinder, a former executive at WPP rival Publicis Groupe SA. “You can probably realize a lot of value there.”

WPP could divest one of its many creative agencies — such as Ogilvy & Mather, J. Walter Thompson or Grey — to a competitor like Publicis or Omnicom Group Inc., freeing up funds to invest in higher-growth areas like digital, says DeGroote. “They could well sell one or two of the big network brands,” he said. “That would help restore investor confidence in the growth agenda.”

Paring the number of its internal brands is another option. WPP’s GroupM division, for example, a cluster of media-buying companies that specialize in executing ad campaigns, is a likely candidate for further consolidation, said William Eccleshare, chief executive of outdoor advertising firm Clear Channel International. The increasing automation of digital ad-buying creates opportunities for further savings, Eccleshare said.

https://en.wikipedia.org/wiki/Martin_Sorrell

Martin Stuart Sorrell was born in London on 14 February 1945 to a Jewish family: his father was an electronics retailer, whose ancestors came from Russia, Poland and Romania. He was educated at the independent Haberdashers’ Aske’s Boys’ School, then studied Economics at Christ’s College, Cambridge, and gained an MBA from Harvard University in 1968.

———–

i was shocked to see sorrell was one of (((them))) and ex harvard.. *sarcasm

this shit is way to easy..

“Under Sorrell, WPP bought minority stakes in an array of digital, media and marketing companies over his 32 years at the helm, including a 15 percent holding in ad-tech firm AppNexus Inc. and a slice of global youth media outlet Vice Media LLC. “He went around the world buying 20 percent of everything he found interesting,” says Richard Pinder, a former executive at WPP rival Publicis Groupe SA. “You can probably realize a lot of value there.”

401

~ by seeker401 on April 20, 2018.

One Response to “Head of the world’s largest advertising empire resigns”

  1. Looks like a pedophile too me… LOL. Sounds like Trump is after his ass and he decided to quit and run.

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