WPP (LON:WPP) is merging its JWT and Wunderman units, the ad giant has said. The move comes with the blue-chip group continuing with its efforts to simplify its business under its new chief executive Mark Read.
WPP’s share price has jumped in London in today’s session, having added 2.49 percent to 873.80p as of 14:54 GMT. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 1.02 percent higher at 7,023.47 points. The group’s shares have added more than 30 percent to their value over the past year, as compared with about a 5.3-percent dip in the Footsie.
WPP continues with simplification
WPP announced in a statement today that it was merging its Wunderman and J. Walter Thompson businesses to form creative, data and technology agency Wunderman Thompson. The new business, which will be positioned as a provider of end-to-end solutions, will be led by Global Chief Executive Officer Mel Edwards, who is currently the Global CEO of Wunderman. Tamara Ingram, CEO of J. Walter Thompson, will become Chairman of the new agency.
“Clients want greater simplicity from their partners and this development, like others at WPP, is designed to reshape our company around their needs,” WPP’s CEO Mark Read commented in the statement. The move comes after in September, the FTSE 100 group created a new agency, VMLY&R, uniting its VML and Y&R brands, as part of its simplification efforts.
Analysts on advertising giant
The 26 analysts offering 12-month price targets for WPP for the Financial Times have a median target of 1,045.00p on the shares, with a high estimate of 1,750.00p and a low estimate of 800.00p. As of November 24, the consensus forecast amongst 27 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.