Chime Communications has agreed to a $580M takeover offer from WPP and Providence Equity Partners to obtain the infusion of cash needed to bankroll expansion of the sports—oriented firm.
Chairman Mervyn Davies said though Chime has "achieved great success in building a leading position in global sports marketing and communications," it required "significant new capital" to reach its full potential.
Providence, which has $40B in assets, has sports-related investments such as Yankees Entertainment & Sports Network and Learfield Sports, a college sports/marketing outfit.
WPP owns about 20 percent of Chime. Retaining that current stake, Martin Sorrell's operation will help grow the business of the privately owned Chime.
In May, WPP established a sports unit called ESP, which represents Manchester United of English Premier League soccer, and the National Basketball Assn.'s Cleveland Cavaliers, the team of LeBron James.
Chime, which generated $460M in 2014 revenues, is parent of Good Relations, Team Spirit and Harvard PR operations.
Stagwell registered an eight percent rise in Q1 revenues to $670M and a $1.3M net loss compared to a $1.4M profit last year.
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.
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