Alibaba, Tencent, and venture capital firm China Media Capital Holdings (CMC) are in the early stage of discussions to buy around 20% of WPP China.
The deal would see WPP pool its Chinese agency operations into a new holding company, before the consortium would acquire equal shareholdings in the new company. WPP would keep overall ownership and control of the operations.
Partially separating its China business—which could be worth about US$2 billion—by including minority investors could help underpin its value through a separate market valuation.
WPP, along with global peers Publicis and Omnicom, has been struggling in recent years with a market shift from a traditional agency-based model to digital media, and from lower spending by traditional clients.
WPP’s woes have been compounded by the uncertainty caused by former CEO Martin Sorrell’s sudden departure in April. Its shares have lost 28% of their market value since 12 months ago.
Full Content: Financial Times
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
FTC to Approve Exxon’s $64 Billion Deal with Pioneer Resources, Excludes
May 1, 2024 by
CPI
UK Competition Watchdog Raises Alarm Over Nvidia’s ARM Takeover
May 1, 2024 by
CPI
Sen. Klobuchar Urges Regulators to Probe Collusion in Health Care Pricing
May 1, 2024 by
CPI
Multiple States Join Tennessee’s Antitrust Lawsuit Against NCAA Over NIL Rules
May 1, 2024 by
CPI
NY AG Joins Suit Challenging NCAA’s Restrictions on Student Athlete NIL Rights
May 1, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI