Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  WPP Group    WPP   JE00B8KF9B49

WPP GROUP

(WPP)
  Report  
Delayed Quote. Delayed London Stock Exchange - 09/19 11:38:53 am
1006.5 GBp   +0.10%
01:21aUNILEVER : WPP lights up board with ad veteran Weed
AQ
09/19WPP : appoints Keith Weed to the Board
BU
09/19WPP : Board Appointment
PU
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

WPP : Ad Giant WPP Sells Kantar Stake to Bain

share with twitter share with LinkedIn share with facebook
share via e-mail
0
07/12/2019 | 09:23am EDT

By Nick Kostov

WPP PLC has agreed to sell a 60% stake in its Kantar market-research unit to Bain Capital Private Equity, raising about $3.1 billion in the advertising giant's biggest move yet to refocus its portfolio.

The London-based company, which will retain 40% of Kantar, said Friday it plans to return $1.2 billion to shareholders and use the rest of the sale proceeds to reduce debt.

Since taking the helm of WPP in September last year, new Chief Executive Mark Read has moved to pare down the sprawling ad empire to satisfy marketers' demands for more nimble, tech- and data-savvy agencies.

The overhaul comes as WPP and its rivals wrestle with a number of challenges, from new competitors such as consulting firms encroaching on their turf, to the growing power of Facebook Inc. and Alphabet Inc.'s Google.

The 52-year-old Briton, who became CEO after the abrupt departure of longtime leader Martin Sorrell, quickly combined creative agency Young & Rubicam and digital-ad firm VML in a bid to bolster lackluster performance. Soon after, he merged storied creative agency J. Walter Thompson and digital specialist Wunderman.

In recent weeks, WPP has also sold its majority stake in U.K. postproduction company The Farm as well as its stake in communications and sports-marketing group Chime Group Holdings.

Still, the sale of a majority stake in Kantar marks Mr. Read's biggest move since taking the helm. Kantar offers research, data, social-media moderating and other services aimed at helping companies tailor their brands, advertising campaigns and products to reach their target market. It has weighed on WPP's results for a number of years, as clients have turned to less labor-intensive digital sources for customer insights.

"Data is critical to WPP's clients and critical to WPP, but there's a growing number of sources of data," Mr. Read told reporters, adding that the company should focus on "data-driven marketing rather than data ownership."

Bain emerged as the winning bidder for Kantar at the start of the month, beating out competition from a group of rival buyout firms, when WPP announced the pair had entered exclusive talks. Including debt, the transaction values Kantar at about $4 billion.

The U.S. private-equity group now faces the task of spearheading a turnaround of Kantar away from the glare of public markets. WPP stands to reap some benefit if Bain succeeds by retaining a minority stake in Kantar.

Luca Bassi, a managing director at Bain, said there were opportunities to invest in Kantar's technology and expand its capabilities. "Market research remains the cornerstone of business decision making," Mr. Bassi said. "All over the world all companies and industry will require more data, and more solutions to analyze and interpret that data."

WPP expects the deal to be largely complete by early 2020, although it remains subject to approval from WPP's shareholders and regulators, as well as the completion of a Kantar reorganization.

Write to Nick Kostov at Nick.Kostov@wsj.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on WPP GROUP
01:21aUNILEVER : WPP lights up board with ad veteran Weed
AQ
09/19WPP : appoints Keith Weed to the Board
BU
09/19WPP : Board Appointment
PU
09/12WPP : HERoes and Yahoo Finance name 12 WPP leaders as role models for women in b..
PU
09/12WPP : Ogilvy Health's Michael Zilligen Named One of the Most 100 Inspiring Leade..
AQ
09/11WPP : and InMobi Group Enter Into a Multi-year Strategic Partnership to Co-Build..
BU
09/11MARTIN SORRELL : Account wins put Sorrell's S4 Capital on course to double in si..
RE
09/11WPP : and InMobi Group enter into a multi-year strategic partnership to co-build..
PU
09/11WPP : Partners With India's InMobi Group
DJ
09/06WPP : Director's Dealing
PU
More news
Financials (GBP)
Sales 2019 12 939 M
EBIT 2019 1 971 M
Net income 2019 1 079 M
Debt 2019 4 251 M
Yield 2019 5,89%
P/E ratio 2019 11,6x
P/E ratio 2020 11,6x
EV / Sales2019 1,31x
EV / Sales2020 1,39x
Capitalization 12 745 M
Chart WPP GROUP
Duration : Period :
WPP Group Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends WPP GROUP
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 24
Average target price 1 107,27  GBp
Last Close Price 1 010,00  GBp
Spread / Highest target 50,5%
Spread / Average Target 9,63%
Spread / Lowest Target -24,6%
EPS Revisions
Managers
NameTitle
Mark Julian Read Chief Executive Officer & Executive Director
Roberto Quarta Non-Executive Chairman
Andrew Grant Balfour Scott Chief Operating Officer
Paul W. G. Richardson Executive Director & Group Finance Director
Stephan Pretorius Chief Technology Officer
Sector and Competitors
1st jan.Capitalization (M$)
WPP GROUP19.30%15 907
OMNICOM GROUP7.18%17 239
PUBLICIS GROUPE-7.39%11 969
INTERPUBLIC GROUP3.34%8 298
JCDECAUX2.53%5 799
HAKUHODO DY HOLDINGS INCORPORATED6.78%5 606