WPP is said to weigh options for 40% stake in Bain’s Kantar

WPP Plc is considering options to exit its 40% stake in market-research business Kantar as the British owner of advertising agencies seeks to raise cash and address a faltering share price, according to people familiar with the matter. The London-based company is working with an adviser as it studies potential alternatives, including an outright sale of the holding that it retained after selling 60% of Kantar to buyout firm Bain Capital in 2019, the people said, asking not to be identified as the matter is private. A deal could give an equity value of about $3 billion to $4 billion for Kantar, which also has around $4 billion of debt, the people said. Sign up for Ad Age newsletters From influencer marketing to agencies, get the latest news and analysis delivered to your inbox Click here One of the options being considered is to sell the stake to Bain, but alternatives such as a potential initial public offering of the business also are under consideration, the people said. Separately, Bain is also planning to kick off the sale of Kantar Media, a unit of Kantar which manages television audience measurement system BARB, the people said. That business could be worth around £1 billion in a sale, the people said. Deliberations for a potential exit of WPP’s stake in Kantar are in the early stages and no final decisions have been made, the people said. WPP could also decide to retain its ownership in the business if it can’t find viable options for the stake, the people said. WPP shares jumped as much as 1.3% after Bloomberg News reported that the company was considering options for the stake. Representatives for WPP and Bain Capital declined to comment. WPP slashed its outlook for revenue growth in October after reporting sluggish sales, blaming shrinking spending from the technology industry and China’s weak economy. Cutbacks from technology clients, which have hit the advertising industry as a whole, deepened in 2023, Chief Executive Officer Mark Read said at the time. WPP shares have fallen 14% in the past year and they’re 61% below their all-time high from 2017. The 2019 sale of the controlling stake in Kantar, which valued the entire business at $4 billion including net debt, was part of Read’s push to cut debt and simplify WPP’s network of more than 100 agencies after ditching his predecessor Martin Sorrell’s acquisition-fueled growth strategy. —Bloomberg News Subscribe to Ad Age Sign up now for the latest industry news and analysis Click here

WPP is said to weigh options for 40% stake in Bain’s Kantar

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