Review: Mad men struggle in vain to preserve past 1 Jun 2018 A new book examines Madison Avenue’s uneasy relationship with Facebook. Advertising firms are trying to combat the social network’s clout with electronic exchanges and use of data. But author Ken Auletta merely flicks at the obvious: The middlemen don’t have a prayer.
Sorrell’s new shell tests value of old contacts 30 May 2018 Six weeks after leaving WPP, Martin Sorrell is putting $53 mln into a vehicle to buy up small ad and technology groups. Success will depend on his address book securing access to senior clients. It will also show whether the 73-year-old really merited his massive former salary.
WPP chairman has too many jobs 23 May 2018 An advisory group says the ad group’s shareholders should oust Roberto Quarta over his handling of CEO Martin Sorrell’s departure. That would be a mistake: his options were limited. But also chairing medical-device maker Smith & Nephew is a stretch. He should focus on one task.
French telco M&A requires more than regulatory nod 22 May 2018 The sector’s supervisor has had a change of heart and is now open to dealmaking. Price wars and investments have bled operators dry. The weakest, Altice and Iliad, are the likeliest targets. But the former is too laden with debt and the latter may be cheaper in a year’s time.
WPP’s post-Sorrell era starts with glimmer of hope 30 Apr 2018 The UK ad group’s sales were broadly stable in the first quarter, allaying fears that the exit of long-time CEO Martin Sorrell would prompt clients to flee. And buyout group CVC may be eyeing WPP’s market-research arm. Together that warrants a smaller valuation discount to peers.
Sky upside depends on Disney-Fox irrationality 25 Apr 2018 Brian Roberts’ Comcast formalised a $31 bln bid for the UK group. Rival suitors Bob Iger and Rupert Murdoch, of Disney and Fox, will struggle to match the U.S. cable giant’s synergies. Sky investors betting on a counteroffer must hope the media moguls ditch financial logic.
Google’s owner starts to look like Alphabet soup 23 Apr 2018 The tech group’s $9.4 bln of earnings came with new noise. It adjusted the way it accounts for investments like Uber, moved some smart-home appliances into Google and now stresses “impressions” over clicks. Investors wanting concrete measurements are getting squishy ones instead.
Publicis shows WPP benefits of smooth succession 19 Apr 2018 The French group last year bumped longstanding boss Maurice Lévy up to the chairman’s suite. New broom Arthur Sadoun has, under Lévy’s guidance, revamped the strategy and revived growth. That is a lesson for its UK rival, which lost CEO Martin Sorrell without any obvious heir.
WPP breakup could deliver 25 percent upside 16 Apr 2018 The UK group is a messy collection of advertising, branding, PR, data and media divisions, often with scant overlap. After the exit of long-term boss Martin Sorrell, selling a few businesses might enable Chairman Roberto Quarta to recover some value for patient shareholders.
Sorrell’s messy exit could put WPP in play 15 Apr 2018 The ad giant’s CEO of 32 years left after a misconduct probe, but is still eligible for a bumper share award. Chairman Roberto Quarta can kick-start a turnaround by selling WPP’s market-research arm. A braver buyer could make a decent return by taking the $21 bln group private.
Netflix’s mooted retro deal is life imitating art 6 Apr 2018 The video-streaming giant is bidding $300 mln for an L.A. signage firm. Like the lead in Oscar-winning "Three Billboards," grabbing people’s attention may be CEO Reed Hastings’ goal. Just making a show about the current scrappy, litigious owners would make more sense.
Sorrell saga points to boardroom rift at WPP 4 Apr 2018 The ad group is investigating allegations of “personal misconduct” against its 73-year-old CEO, which he denies. The leaked probe suggests some directors have misgivings following a share-price slide. The bigger problem, though, is WPP’s structurally-threatened business model.
Cox: Sinclair is more totalitarian than democratic 4 Apr 2018 Donald Trump's favorite $3 bln broadcaster is downright deplorable, at least when it comes to corporate governance. The board is stocked with ancient cronies – with no women in sight. Fold in the controversy over its Orwellian editorial policies and the stock is best avoided.
Losing WPP boss could be pricier than keeping him 3 Apr 2018 The board is investigating Martin Sorrell for potential improprieties, the WSJ reported. It’s hard to think of a CEO more enmeshed in a company’s strategy. Even if nothing comes from the probe, it should force investors to confront their unhealthy reliance on WPP’s main man.
Viewsroom: Facebook’s multiplying problems 29 Mar 2018 The social network founded by Mark Zuckerberg is reeling from a data harvest on some 50 million users. It will take time for the $440 billion firm to feel the impact but people are starting to slowly unplug. Plus, the world’s largest consumer-drone maker may go public.
Facebook crisis could bust digital-ad duopoly 23 Mar 2018 Advertisers may pull money from the social network, which together with Google sucked up 84 pct of digital ad spending in 2017. That cash is likely to stay with data-rich platforms rather than older media. Amazon could benefit if CEO Jeff Bezos can avoid raising antitrust fears.
Oscars signal spread of sports-led live-TV decline 6 Mar 2018 Sunday’s Academy Awards show was the least-watched in its history. Viewers are also losing interest in American football and the Winter Olympics. Dwindling audiences for real-time events suggest one of U.S. broadcast television’s last bulwarks is in danger of collapse.
WPP raises spectre of adland stagnation 1 Mar 2018 Martin Sorrell’s group lost 2.5 bln pounds of value after it said sales and operating margins may flatline in 2018. That looks conservative, since events like the World Cup help advertisers. A bigger concern is new earnings forecasts that suggest stasis in the long term.
Twitter’s first profit isn’t much to tweet about 8 Feb 2018 Edging into the black triggered a 20 pct bump in the social-media company’s market value, to $24 bln. Part-time boss Jack Dorsey seems optimistic despite outside scrutiny of Twitter’s feeds. But it’s hard to see how a result achieved by cutting costs is a great sign for growth.
Verizon and Comcast look to play catchup in M&A 23 Jan 2018 The telecom and cable giants appear smaller in the rear-view mirror of Disney’s $52 bln Fox deal. They are unlikely to stand still for long. AOL and Yahoo haven’t done enough to up Verizon’s content game, while a merger could fulfill Brian Roberts’ wireless ambitions at Comcast.