Latest news with #MSQPartners
Times
6 hours ago
- Business
- Times
S4 Capital receives merger approach from MSQ Partners
Sir Martin Sorrell's S4 Capital has confirmed that it has received an approach from a rival advertising company, MSQ Partners, about a 'combination' of the two businesses. It is the latest attempt by a rival to move in on the veteran ad man's struggling company, capitalising on a stock price that has plummeted by more than 90 per cent over the past five years. Shares in S4 rose 3.8 per cent on Monday on news of the talks, gaining ¾p to close at 22p. No details about a potential valuation were disclosed and a statement from S4 said: 'There can be no certainty that a transaction will be forthcoming.' Any deal would be structured as an acquisition of MSQ by S4 Capital, rather than an offer under the Takeover Code by MSQ.
Telegraph
12 hours ago
- Business
- Telegraph
Sorrell attempts to revive struggling ad firm with merger talks
Sir Martin Sorrell is vying to revive his struggling advertising agency by exploring a potential takeover of a rival group. S4 Capital, which was founded by Sir Martin in 2018, confirmed it has received an approach from MSQ Partners about a possible merger. The company said any deal would be structured as an acquisition of MSQ Partners by S4 Capital, but warned discussions were at a 'very preliminary stage' and there was no certainty an agreement would be reached. Shares in S4 Capital jumped as much as 10pc on announcement of the talks. MSQ Partners, which is majority-owned by US private equity firm One Equity Partners, was contacted for comment. The discussions will raise questions over the future of Sir Martin, who founded S4 Capital following his acrimonious departure from WPP. He grew the company rapidly in its first few years through a slew of acquisitions. But the ad firm, which counts Amazon and Google among its clients, has been hit by a slowdown in advertising spend and accounting blunders that forced it to delay its financial results twice. S4 has also issued a string of profit warnings in recent years after falling short on optimistic revenue forecasts. Shares have collapsed more than 90pc in the last five years with the company's market value now below £140m, down from a peak of around £5bn in 2021. The ad firm has rolled out heavy cost-cutting measures, slashing hundreds of roles and cutting discretionary spending, but still posted a loss of £307m last year after taking a £280m write-down owing to tough trading conditions. London-based MSQ Partners, which was founded in 2011, employs more than 1,850 people worldwide and counts Diageo, Unilever and Vodafone among its clients. It is not the first time S4 Partners has been linked to a potential merger. The ad firm last year received a takeover offer from US marketing group Stagwell but Sir Martin rebuffed the offer, the Wall Street Journal reported at the time. It comes amid an accelerating trend of consolidation across the advertising industry as traditional agencies grapple with the dominance of tech giants and the rapid growth of artificial intelligence (AI). Omnicom and Interpublic are gearing up for a merger that will create the world's largest advertising company, worth $30bn (£22bn). WPP, which was overtaken by French rival Publicis last year, has also been linked to a potential tie-up with Accenture. WPP, which has appointed former Microsoft executive Cindy Rose to replace Mark Read as its chief executive from next month, has itself wielded the axe on 7,000 jobs over the last year in an effort to slim down its business and cut costs.
The Independent
13 hours ago
- Business
- The Independent
Sir Martin Sorrell's S4 Capital in early talks over merger deal
Sir Martin Sorrell's advertising firm S4 Capital has confirmed early talks over a potential merger deal with rival MSQ Partners. Shares in S4, which was founded by the advertising mogul in 2018, jumped in early trading on Monday as a result. It comes after Sky News reported on Saturday that creative agency firm MSQ, which is owned by private equity group One Equity Partners, approached Sir Martin about a potential deal. In response, S4 said on Monday that it 'received a proposal' about potentially merging the two businesses. 'These discussions are at a very preliminary stage and there can be no certainty that a transaction will be forthcoming,' S4 said in statement. The London-based firm said any deal would be structured so that S4 would acquire MSQ to form the combined business. Sky News also reported that US firms Stagwell and New Mountain Capital have seen moves to buy S4, or parts of its business, rebuffed by Sir Martin over the past year. Sir Martin founded S4 following his departure from FTSE 100 giant WPP. He quickly grew the business globally through a raft of acquisition deal. The company saw its share valued soar to as much as £5 billion in 2021, but has seen this tumble to around £140 million after the advertising sector was hit hard by the global economic slowdown and growth in AI. S4 Capital shares were up 3.8% on Monday morning.
Reuters
15 hours ago
- Business
- Reuters
Martin Sorrell's S4 Capital confirms merger talks with MSQ Partners
Aug 11 (Reuters) - Martin Sorrell's ad group S4 Capital (SFOR.L), opens new tab is in early talks to potentially combine with marketing agency MSQ Partners, it said on Monday, sending its shares as much as 14% higher. S4 Capital, established in 2018 following Sorrell's exit from rival WPP (WPP.L), opens new tab, said any potential transaction would see it acquire MSQ Partners, a firm majority-owned by private equity group One Equity Partners. There is no certainty a deal will be concluded, S4 added. S4 Capital, hit by client spending cuts due to U.S. tariffs and a shift towards AI-driven marketing, lowered its revenue forecast in June as advertising firms face rising pressure to adapt or risk losing major accounts. The company's shares have dropped roughly 98% from their September 2021 peak to give a market value of about 140 million pounds, a fraction of its previous worth. The shares bounced from Friday's record low early on Monday, and were 10% higher at 23.25 pence by 0756 GMT. Sorrell, who built WPP into the world's biggest advertising agency through 33 years of dealmaking, quit the ad group in April 2018, after an allegation of personal misconduct, which he denied. The potential merger with MSQ Partners would give S4 Capital access to a broader client base spanning the finance, healthcare, and consumer goods sectors. MSQ has more than 250 clients including Unilever, Haleon, P&G and Lego. S4's clients include Google-parent Alphabet, Amazon and Meta. The deal discussions were first reported by Sky News on Saturday.
Wall Street Journal
16 hours ago
- Business
- Wall Street Journal
Martin Sorrell's S4 Capital in Talks With MSQ Partners About Possible Tie-Up
Martin Sorrell's S4 Capital SFOR -5.78%decrease; red down pointing triangle said it received a proposal from marketing group MSQ Partners, majority owned by private-equity firm One Equity Partners, about a potential tie-up and that they are in talks. 'These discussions are at a very preliminary stage and there can be no certainty that a transaction will be forthcoming,' S4 Capital said.
