Nike puts politically divisive spring in its step 4 Sep 2018 The U.S. brand is putting Colin Kaepernick, the first NFL player to kneel for the national anthem, in its revived “Just Do It” ads. Airlines, sports stores and pizza chains have wrestled with partisan issues. In the commoditized sneaker trade, it’s a risk worth taking.
WPP’s new boss skips honeymoon period 4 Sep 2018 Mark Read unveiled bad news on profitability and froze the dividend on his second day in the job. The $20 bln ad group will have to invest more in technology and unify its sprawling divisions while cutting debt. He may be forced to cut payouts to shareholders in the coming year.
WPP has least bad CEO at its fingertips 13 Aug 2018 The ad group has yet to replace Martin Sorrell four months after his exit. External candidates are proving hard to come by. Best to appoint de facto interim boss Mark Read on a permanent basis. He’s tech savvy and has insider knowledge that will help unify the sprawling business.
Facebook and Twitter are lucrative quagmires 24 Jul 2018 Bosses Mark Zuckerberg and Jack Dorsey are under fire for allowing misinformation and bullying to flourish on their social networks. Lawmakers and users are beginning to notice, but advertisers have a higher tolerance – and that’s what keeps the swamp bubbling.
Publicis setback is healthy dose of adland realism 19 Jul 2018 Despite an unexpected drop in revenue in the second quarter, the French group still expects to hit financial targets this year and beyond. It may well do so. Even so, the hiccup is a sign that outswimming rivals in treacherous media waters is proving harder than anticipated.
Aussie ad deal offers signs of a frothy M&A market 21 Jun 2018 France’s JCDecaux is bidding $800 mln for APN Outdoor, disrupting the target’s own dealmaking. Australia is an appealing market and this could be a smart deal for the suitor. But the flurry of activity, and the exuberant reaction of JCDecaux shares, sends a worrying message.
Sorrell fan club can live with WPP scandal 12 Jun 2018 The former CEO left the ad group after a probe into alleged misconduct, which he denies. Institutional investors have since stumped up funding for a new venture, and handed Sorrell a controlling share. That suggests they care more about returns than his personal reputation.
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.