WPP (LON:WPP) has merged two of its agencies, the advertising giant has said. The move came after earlier this month the group announced that it had appointed insider Mark Read as its chief executive officer, following the departure of Sir Martin Sorrell earlier this year.
WPP’s share price has been steady in today’s session, having added 0.22 percent to 1,148.50p as of 13:16 BST. The advance is largely in line with gains in the broader UK market, with the benchmark FTSE 100 index currently standing 0.14 percent higher at 7,522.06 points. The group’s shares have lost more than 16 percent of their value over the past year, as compared with a near three-percent rise in the Footsie.
WPP mergers two ad agencies
WPP announced yesterday that it had created a new agency, VMLY&R, uniting its VML and Y&R brands. The new agency will be led by CEO Jon Cook, who is currently Global CEO of VML, and who will report to the group’s chief executive Mark Read.
“VMLY&R will be a powerful brand experience offering and a core agency brand for WPP,” Read pointed out. “This is an important step as we build a new, simpler WPP.” The Times noted in its coverage of the news that the FTSE 100 group has been facing concerns that it has become too unwieldy to thrive in the industry because of the shift to digital.
Analysts on FTSE 100 group
The 25 analysts offering 12-month price targets for WPP for the Financial Times have a median target of 1,325.00p, with a high estimate of 1,845.00p and a low estimate of 1,060.00p. As of September 21, the consensus forecast amongst 27 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.