Havas Says Let's 'Have Us' WPP; GDPR You Kidding Me | AdExchanger

"WPP right now is floating on a life raft with sharks circling below and vultures above. The company shed 60% of its market cap in the past year and now stands at just above $4 billion in value. (That's up from about $3 billion before the news of Havas mulling a deal dropped over the weekend.) Hedge funds have placed short-seller bets on WPP, expecting a payoff if WPP is removed from the FTSE 100, the leading UK stock index. With a market cap in the low billions, WPP is a top candidate for replacement in the index."

"Since WPP is now a relatively smaller company, it's in play for hostile or negotiated arrangements. For instance, Havas, which is a private company controlled by the family of billionaire Vincent Bollor could secure a double-digit ownership share in WPP and likely a board seat, the Times reports. After all, that's how the Bollor family began its steady takeover of Havas, then a public company, beginning in 2004."

"The European Commission, which oversees tech regulation in the EU, will unveil tomorrow a proposed "simplification" of many of its existing rules. The Commission is responding to criticisms that its heavy hand in regulatory matters over the past decade have stifled the EU's competitiveness with the US and China and unfairly targeted US-based companies. It also hopes looser regulation will make Europe a leader in the AI race. For example, the proposed changes to GDPR, which set the template for how digital advertisers collect and use online data, are actually focused on AI."

"Users will no longer have to consent to data sharing on individual websites, and may instead set their consent preferences at the browser level. The change makes it easier for AI companies to access training data - but also, naturally, impacts the ad industry. Plus, the Commission is rewriting how it defines "personal data" in the first place, in a complete rethinking of the protections that underlie GDPR."

WPP has lost roughly 60% of its market capitalization over the past year and now sits just above $4 billion, making it vulnerable to index removal and takeover plays. Hedge funds have shorted the stock expecting gains if WPP is removed from the FTSE 100. Havas, controlled by the Bollor family, could obtain a significant stake and board representation, echoing prior takeover tactics. Separately, the European Commission plans regulatory simplifications aimed at boosting competitiveness and AI leadership, proposing GDPR changes such as browser-level consent and a redefinition of personal data that will ease AI access to training data and affect the advertising industry.

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