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The two behemoths could take 20% of the Chinese activity of the world's number one advertising
Officially, the information has nothing to do with the recent setbacks of WPP. But the "coincidence" seems too big. According to Sky News, the world's number one advertising company would be in talks with Alibaba and Tencent to sell part of its Chinese subsidiary.
The deal, to which China Media Capital Holdings (CMC) would join, would promote business 2 to 2.5 billion dollars (1.7 to 2.1 billion euros), adds the British channel. WPP would integrate its Chinese operations into a new holding and retain the majority and control.
Resignation of its founder
WPP is in trouble since April and the departure of its founder and general manager, Martin Sorrell, targeted by a internal investigation into financial irregularities. The 73-year-old boss has since launched his own communications company and wants to compete with WPP.
According to Sky News, the Chinese transaction was contemplated even before Sorrell's departure. The channel adds that Roberto Quarta, the executive chairman of WPP, traveled to China this month with deputy general manager Andrew Scott to continue the discussions.
Raphael Bloch
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