Martin Sorrell’s new business venture "has beaten WPP to buy a Dutch advertising agency," according to Simon Duke of the LONDON TIMES. The former WPP CEO, "who quit abruptly in April following an investigation into his personal conduct," created S4 Capital weeks later. This will "now merge with Media Monks," an agency in Amsterdam which makes online marketing campaigns. Sorrell reportedly paid up to €300M ($352M). Media Monks has revenues of about €110M ($129M). It employs 750 people and has 11 offices in 10 countries, from the U.S. and Latin America, through Britain and Europe to Asia and the Middle East. Its clients include adidas, Amazon, GE, Google, Hyundai, JAB, Johnson & Johnson, Netflix, 3G and Weber. Under the deal, Media Monks’ owners "will receive shares in S4 Capital as well as cash" (LONDON TIMES, 7/10).
DIFFERING ACCOUNTS: In London, Hannah Boland reported confirmation of the purchase "is likely to ramp up tensions" with WPP, which last week sent a letter to Sorrell warning that, in making an offer, "he was likely to be in breach of confidentiality obligations and so may be stripped of his outstanding share awards." The letter also claimed WPP "had been looking into" a Media Monks bid last November, while Sorrell was still CEO, and that he was "heavily involved in talks with the Dutch company prior to stepping down." Sorrell had claimed that he met Media Monks' management last summer, and "had then lost contact until after he left WPP, although WPP is thought to have email proof that this was not the case" (TELEGRAPH, 7/9). The BBC reported earlier this month, a source close to Sorrell described relations between WPP and its former boss as "obviously not very good." The source said that WPP's threats to take away his share awards "would not deter" him, saying, "This guy is worth £400 million to £500 million ($531M-$664M). He is not going to allow £20 million ($26.6M) to stand in the way of what he is trying to do" (BBC, 7/10).
