Martin Sorrell’s advertising group S4 Capital confirmed on Monday that it is in early talks to merge with MSQ Partners, a marketing agency majority-owned by private equity firm One Equity Partners. The news sent S4’s shares up as much as 14% before settling 10% higher at 23.25 pence. Founded in 2018 after Sorrell’s departure from WPP, S4 Capital said the potential deal would involve acquiring MSQ Partners, expanding its reach across the finance, healthcare, and consumer goods sectors. The company has faced headwinds in recent years, including client spending cuts tied to U.S. tariffs and an industry shift toward AI-driven marketing, leading to a reduced revenue forecast in June. S4’s market value has fallen roughly 98% from its September 2021 peak to about £140 million. Shares rebounded from a record low hit on Friday following the merger announcement. Sorrell, who built WPP into the world’s largest advertising agency during his 33-year tenure, left the group in 2018 after denying an allegation of personal misconduct. MSQ serves more than 250 clients, including Unilever, Haleon, P&G, and Lego, while S4’s roster includes Alphabet, Amazon, and Meta.
Source: Reuters
