 Martin Sorrell |
WPP shares plummeted seven percent in London today, the first trading day following the bombshell exit of CEO Martin Sorrell following a probe (now completed) of his personal misconduct and misuse of assets allegations.
The stock price of the British ad/PR conglom has been on the slide for more than a year due to cutbacks in consumer spending and earnings downgrades.
The exit of Sorrell, who built WPP during the past 33 years and was considered the glue that held it together, has triggered speculation of a break-up/sale of the conglom.
Kantar Media, the market research and data investment arm, is viewed as the most attractive WPP asset, along with PR units such as Hill+Knowlton Strategies, Finsbury and Burson Cohn & Wolfe, according to the Financial Times.
Sorrell, who does not have a non-compete clause in his employment contract, may be planning the launch of WPP II.
In his farewell note to WPP staffers, he signed off with, “Back to the Future.”
WPP reported a 5.5 percent decline in Q1 PR revenues to $292M as its BCW and Hill & Knowlton units suffered the loss of Pfizer assignments, and cutbacks in client spending due to the economic uncertainty.
Interpublic CEO Philippe Krakowsky said the firm is off to a “solid start to the year” as its flat $2.2B net revenues are in line with 2024 financial targets.
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Omnicom CEO John Wren reports Q1 revenues jumped 5.4 percent to $3.6M, powered by a solid 7.0 percent rise in its advertising & media segment.
Public Policy Holding Company registered 24.1 percent growth to a record $135M during the past year, which included the results of the March 1 acquisition of Multistate Assocs.
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