Sir Martin triumphs over his former firm
SIR MARTIN Sorrell has triumphed over his former firm, WPP, to snap up Netherlandsbased advertising firm Media Monks.
Sir Martin, who left WPP in April following allegations of misconduct, has acquired Media Monks through his new venture, S4 Capital.
He pressed ahead with the deal despite receiving a legal threat from WPP alleging that he had broken a confidentiality agreement with the firm.
WPP threatened to deny him £20 million in share awards if he pursued the Media Monks acquisition.
“The objective behind the merger is to provide clients with digital services, which are agile, efficient, and of premium creative quality,” S4 Capital said in a statement.
WPP carried out an inquiry into allegations that Sir Martin misused company funds, but details of the investigation were never disclosed. The WPP board has come under fire for its handling of his departure, which included a bumper £20 million payout. In addition, the tycoon is not hampered by a non-compete clause. It means Sir Martin is able to go head to head with WPP for contracts, although he has played down direct competition with his former firm.
He has pumped £40 million into S4 Capital, with support pledged from investors for up to £150 million more.
He previously worked at Saatchi & Saatchi, and was knighted in the Queen’s New Year honours list in 2000.
Sir Martin was educated at the Haberdashers’ Aske’s Boys’ School before going on to read economics at Christ’s College, Cambridge. Sir Martin entered the world of work at Glendinning Associates before starting at Saatchi & Saatchi in 1975, becoming group finance director in 1977.
When he announced he was stepping down at WPP earlier this year, Sir Martin said: “As I look ahead, I see that the current disruption is simply putting too much unnecessary pressure on the business, our over 200,000 people and their 500,000 or so dependents, and the clients we serve in 112 countries.
“That is why I have decided that in your interest, in the interest of our clients, in the interest of all share owners, both big and small, and in the interest of all our other stakeholders, it is best for me to step aside.”
To provide clients with digital services ... of premium quality, A statement by S4 Capital, Sir Martin’s investment vehicle, on the takeover.