WPP explores potential $8 billion sale of Kantar stake

WPP, the London-based advertising giant, is contemplating the divestiture of its 40% ownership stake in Kantar, a move that could carry an estimated value of up to $8 billion, encompassing outstanding debt. With the assistance of an advisor, WPP is exploring options that include an outright sale of its stake in the market research firm or a potential transaction with Bain, its co-shareholder and a private equity fund, as disclosed by Bloomberg on Wednesday. Following this report, WPP's stock experienced a 1.2% increase.

This potential sale is seen as a strategic measure to restore confidence in WPP shares, particularly after the advertising conglomerate revised its financial outlook downward for the second consecutive quarter in October, leading to a three-year low in share prices. The consideration of divesting the Kantar stake aligns with WPP's efforts to address market uncertainties and strengthen its financial position.

Last week, WPP shares gained momentum following a Sky News report speculating on the possible sale of Kantar Media, suggesting that such a transaction could generate £1 billion for the two co-owners. The ongoing developments underscore WPP's proactive stance in adapting its portfolio and financial strategy to navigate the dynamic landscape of the advertising industry.