WPP Unloads Its Stake In Chime
By Community | July 1, 2019
WPP Plc said it sold its minority stake in sports, entertainment and communications company Chime, owner of CSM Sport & Entertainment, for £54.4 million pounds as the world’s biggest advertising company looks to sell non-core assets and return to growth.
WPP said on Monday it had sold the stake to Chime’s majority shareholder Providence Equity Partners, with the potential for additional pay-out amounts based on the future value of Chime.
WPP did not disclose its stake in Chime, but a Sunday Times report said it is expected to offload 25% of its holding to Providence, which already owns 75%.
WPP said in December that it will invest to hire new creative staff and reduce costs by cutting offices and jobs under a turnaround plan by CEO Mark Read, who replaced founder Martin Sorrell during a period of turmoil in 2018.
WPP also sold post-production services provider The Farm Group to Los Angeles-based Picture Shop earlier this month without disclosing the terms.
WPP has shortlisted a series of U.S. buyout funds to submit binding bids for a majority stake in its data analytics unit Kantar as it wants to finalize the sale in late June, sources familiar with the matter told Reuters.