Shares of WPP, the UK-based advertising powerhouse, climbed as much as 6% on Monday, propelled by market speculation of a potential takeover by its French rival Havas or a private equity consortium.
Reports indicate that Havas, controlled by billionaire Vincent Bolloré, has held high-level discussions about acquiring a minority stake in WPP, a move that could precede a full bid or strategic board influence.
Private equity giants Apollo and KKR are also reported to have explored interest in parts of WPP’s operations, although Apollo has publicly denied any bid intentions.
Historic low share price and strategic challenges
WPP’s share price has languished near its lowest levels since the mid-1990s, dragged down by a series of profit warnings, increased competition, and a client exodus.
Its market capitalisation has plunged from around £25 billion in 2017 to just £3 billion today, placing the company at risk of being demoted from the FTSE 100 index after nearly 30 years of inclusion.
Amid accelerating digital transformation and growing demand for artificial intelligence-powered advertising solutions, WPP has struggled to keep pace with rivals enhanced data and AI capabilities.
Cindy Rose, the newly appointed CEO, revealed a comprehensive company review last month following a fresh profit warning and warned that some jobs would be at risk.
Industry consolidation and Havas’s ambitions
Havas, the smallest of the global advertising holding companies, aims to build scale, particularly in media buying and selling, to better compete with dominant groups like Omnicom and Publicis.
Bolloré previously tried to strengthen Havas through board influence in UK competitor Aegis prior to its £3.2 billion sale to Dentsu in 2012.
Industry insiders suggest a similar incremental approach with WPP could be on the table, involving a significant minority stake coupled with assertive governance demands.
The potential deal aligns with broader sector consolidation trends, including Omnicom’s pending acquisition of Interpublic Group and Dentsu’s exploration of international business divestments.
Earlier this year, US consulting giant Accenture was reported to have held talks with WPP for a possible partnership or acquisition, emphasizing the growing interest from outside traditional media groups in advertising assets.
What’s next for WPP?
While there is no confirmation of any formal offer currently, the flurry of takeover speculation has injected fresh optimism among investors amid a turbulent advertising landscape.
Should Havas or private equity firms advance their bids, the deal would reshape the competitive dynamics of the global ad industry.
For now, market watchers await clearer signals from WPP’s strategic review and upcoming earnings, milestones that may clarify the company’s path forward and impact its valuation and shareholder confidence.
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