WPP share price: Investment arm GroupM to acquire German media company

on Jan 7, 2014
Updated: Oct 21, 2019

iNVEZZ.com, Tuesday, January 7: (LON:WPP), the FTSE 100 advertising and public relations group, announced today that its global media investment management arm GroupM had acquired the German digital media company plista. According to the statement, the WPP subsidiary sees “great potential in developing plista on a global level as part of its digital specialist portfolio”.

In today’s trading, WPP shares were flat at 1,360.82p as of 12:22 UTC.
Found in 2008, plista provides solutions for targeted digital advertising, with a workforce of some 100 based in Germany, Switzerland and Austria. Amongst the company’s clients are Coca Cola, Volkswagen, Sony and RWE. The agency generated revenues of €3.9 million in the year ended 31 December 2012, with gross assets at that date of €2.9 million, according to the WPP statement. GroupM plans to develop plista as part of its digital specialist portfolio, along with Xaxis and Quisma.

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WPP describes the acquisition of plista as representing a further step towards the group’s goals of developing its networks in “fast-growth” markets and sectors and continuing the strategy of strengthening its digital media capabilities. Digital revenues were more than $5 billion in 2012, a third of total group revenues of $16.5 billion that year. WPP says that its aim is for ‘at least 40-45 percent of revenues to come from each of fast-growth markets and new media over the next five years.’

WPP noted that Germany is its fourth-biggest market globally, with revenues of over $1.2 billion and some 7,000 personnel.
**Well positioned**

In other WPP news, Hargreaves Lansdown’s (LON:HL) Richard Hunter last week picked the stock as a leading performer in 2014. Hunter pointed in particular to improving conditions in the global advertising market. Advertising spending tends to increase rapidly when an economy starts to recover, he wrote, adding that ‘the recovery in the US and UK should continue to underpin the advertising sector’.

Hunter pointed to a number of one-off events such as the mid-term congressional elections in the United States, the football world cup in Brazil and the Winter Olympics in Sochi, which should also provide a boost to advertising spending. As a world leader in advertising and marketing, WPP is ‘particularly well positioned’ to take advantage of these opportunities, Hunter observed, concluding, “In my view the company looks set for another strong year in 2014”.
**As of 13:15 UTC buy WPP shares at 1359.00p**
**As of 13:15 UTC sell WPP shares at 1358.00p**
Trade stocks with Hargreaves Lansdown from £5.95 per deal.
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