With Sorrell gone, WPP could shed assets, analysts say
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With Martin Sorrell out the door, takeover vultures could soon circle, eyeing portions of WPPs business ripe for the taking.
At least that is the opinion of multiple financial analysts, who on Monday began speculating that the world’s largest ad agency holding company could soon start selling off some of the sprawling businesses Sorrell built up over decades. Clarity probably won’t come until WPP names a new CEO. But multiple analysts say the timing could be right for the company to begin paring down, or even to be sold entirely, as it battles financial headwinds.
“Sir Martin could arguably be called the glue that bound much of WPP together. With his departure, we think the chances of significant chunks of the business being sold off have dramatically increased,” analysts from U.K.-based Liberum Capital Limited stated in a report Monday. French-based equity research provider Natixis piled on: “WPP now looks even more likely to be broken up or taken over.”
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