"One source suggested that Havas is interested in buying WPP's media agency. Another suggested that Havas may intend to build a stake and seek a board seat. Both Havas and WPP maintain their stance of not commenting on speculation. The interest comes as WPP faces pressure to improve performance amid a challenging global advertising market, with its new CEO having issued a profit warning just a few weeks ago."
"Similarly, Dentsu has faced steep revenue declines in Q3 across overseas markets and prepares for significant staff reductions in December. CEO Hiroshi Igarashi commented that restructuring was "an urgent issue", noting that most of the group's weakness stems from underperforming operations in the Americas, EMEA, and APAC, where organic growth has been negative year-to-date. The ¥52bn (£250m) restructuring plan will fund severance costs and other measures, with ¥28 bn (£134.7m) booked this year, most of it in the fourth quarter."
Havas is in talks over a possible transaction involving WPP, with sources saying Havas may buy WPP's media agency or build a stake and seek a board seat. Both companies declined to comment on speculation. WPP faces pressure after a profit warning and an 80% fall in market capitalisation over eight years, though shares rose on the deal news. Dentsu reported steep Q3 revenue declines overseas and plans significant staff cuts beginning in December under a ¥52bn restructuring, with ¥28bn booked this year. A German court found Google abused dominance in price comparison and ordered €572m in damages.
Read at Exchangewire
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