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| Mark Penn |
Stagwell Group, a holding company formed by Mark Penn in 2015, has proposed merging with MDC Partners to create a $2B ad/PR combine.
Penn, who chairs and owns a 30 percent MDC stake, said a deal would result in $35M in cost synergies and offer "best-in-class combination of insights, creative, digital and performance."
Stagwell's $4.25 per-share offer represents a 263 percent premium to MDC's June 24 closing stock price of $1.17
MDC has formed a special committee of the board to evaluate Stagwell's officer. “We are committed to maximizing shareholder value and, if it makes sense to proceed, we will do so in a thoughtful and diligent manner," said Irwin Smith, lead independent director of the company.
MDC recorded a 0.3 percent dip in first-quarter revenues to $327.7M and a $2.4M loss.
Its PR units include Allison + Partners, KWT Global and Hunter.
Stagwell's PR properties are Finn Partners, SKDKnickerbocker, Sloane & Co. and Wye Communications.
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.
Why financial planning always plays a crucial role in every PR firm’s success.
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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