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WPP’s new investor pitch contains too much hot air

11 Dec 2018

CEO Mark Read wants to slash costs and get the $13 bln ad group growing in line with rivals by the end of 2021. That’s the right idea. But his growth plan looks heavier on jargon than detail, while cuts are modest. Overall it’s less convincing than one of WPP’s whizzy campaigns.

WPP’s broken financial model is hard to fix

25 Oct 2018

The ad group’s old strategy of modest growth supplemented by M&A and share buybacks no longer works. New CEO Mark Read faces shrinking sales and a big debt pile. Given how long it will take to streamline the business and invest in new technologies, investors will be unforgiving.

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.

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.