Sorrell wins the first round

Martin Sorrell’s new venture acquired Dutch digital agency MediaMonks Multimedia Holding BV, beating his former employer WPP Plc in the auction and setting up a possible clash with the advertising powerhouse. Sorrell had outbid WPP and rival suitors for the acquisition, at a price of about €300 million ($352 million; Dh1.3 billion), Bloomberg reported.

MediaMonks, with revenue of about €110 million, plans to focus on platform development, data analytics and digital media buying going forward.

Sorrell’s S4 has a plan to acquire Derriston Capital Plc, a listed shell company, and raise £1 billion of equity for further deals. His new venture has attracted the backing of City of London investors including hedge fund manager Crispin Odey. Still one of WPP’s largest investors, Sorrell has said he’s not out to damage the ad group with his new venture.

However, some other WPP shareholders have criticised the board for not including a non-compete clause in Sorrell’s contract to prevent him from going head-to-head with the company. WPP shares are worst-performing among major advertising companies, as investors fret about its ability to contend with big market shifts, including declining spending by consumer giants and new competition from digital rivals and consultants.

Sorrell’s departure followed a stock plunge for WPP — which has lost almost a quarter of its market value over the past year — and its worst performance since the financial crisis.