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 ā¬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 Sorrellās 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, WPPās former CEO, said thatĀ S4 Capital (then Derriston Capital) āwill not compete directlyā with WPP, following his comeback into the industry. According to an exclusive interview withĀ Reuters, WPPās spokesperson said that Sorrell has spoken to two of itsĀ shareholders including fund managerĀ at Jupiter Asset Management Alastair Gunn, who was assured by Sorrell that his new venture āwill not undermineā theĀ advertising network. SorrellĀ added at the time that he āwould not seek to hurtā the company he started 33 years back.
Previously, Sorrell described his departure asĀ being āextractedā from the networkĀ and that heĀ is ānot going into voluntary or involuntary retirementā. He also added that he now has a ābetter perspectiveā on where the strengths and weaknesses of traditional advertising companies lie, now that he has left WPP.