Sir Martin Sorrell is reported to be closing in on his second major acquisition amidst suggestions that the former WPP chief is poised to make a $200m move for San Francisco-based advertising firm Mightyhive.
The audacious move across the Atlantic comes just weeks after Sorrell concluded a €300m acquisition of Dutch agency Media Monks to announce his return to the industry frontline in grand style.
Both deals have been negotiated through Sorrell’s S4 Capital vehicle which raised $51m from investors (£40m of which came from Sorrell’s own pocket) after floating on the London Stock Exchange.
S4’s war chest is expected to be further swelled by a further £150m of pledged investment from major hedge funds such as Lansdowne Partners and Toscafund as well as individual investors.
In a statement responding to press reports S4 wrote: “The Board of the Company notes the recent media speculation and confirms that, as it often is, it is in discussions with the owners of several digital marketing services businesses about a possible acquisition (the ‘Possible Transaction’).
“There can be no certainty as to whether any transaction will occur nor as to the terms of any Possible Transaction.”
Any move for Mighthive would fit S4’s stated strategy of forming a new media business incorporating data, content and technology.
Credit: The drum