Martin Sorrell has come out on top in the bidding war with WPP for MediaMonk. According to WSJ, Sorrell and his team will be dishing out around â¬300 million for MediaMonks in cash and shares. The digital production company MediaMonks currently has offices in Singapore, Shanghai, Dubai, Europe and US.
This is Sorrellâs first acquisition since resigning from WPP. Over the past few days, headlines have been swirling around of the rising tension between Sorrell and WPP lawyers being brought in by WPP to warn Sorrell that he was likely to be breaching his confidentiality agreement. Ultimately this could lead to Sorrell losing shares worth millions of pounds.
The move comes one month after Sorrell, WPPâs former CEO, said thatÂ S4 Capital (then Derriston Capital) âwill not compete directlyâ with WPP, following his comeback into the industry. According to an exclusive interview withÂ Reuters, WPPâs spokesperson said that Sorrell has spoken to two of itsÂ shareholders including fund managerÂ at Jupiter Asset Management Alastair Gunn, who was assured by Sorrell that his new venture âwill not undermineâ theÂ advertising network. SorrellÂ added at the time that he âwould not seek to hurtâ the company he started 33 years back.
Previously, Sorrell described his departure asÂ being âextractedâ from the networkÂ and that heÂ is ânot going into voluntary or involuntary retirementâ. He also added that he now has a âbetter perspectiveâ on where the strengths and weaknesses of traditional advertising companies lie, now that he has left WPP.