WPP share price: Ad giant buys Indian social media agency

on Mar 27, 2014
Updated: Apr 9, 2020
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iNVEZZ.com, Thursday, March 27: Advertising giant WPP Plc (LON:WPP) announced today that its wholly-owned operating company JWT has agreed to acquire a majority stake in Social Wavelength, one of the leading social media agencies in India. The move represents a further step in WPP’s strategy of developing its networks in fast-growth markets and sectors.

Earlier this week WPP chief executive officer Martin Sorrell discussed the group’s acquisition efforts in China, which is also an important part of the strategy (WPP share price: UK Ad Giant Acquires China’s XMKT Group).
In today’s trading WPP shares rose 0.25 percent to 1,204.95 as of 12:51 UTC. The company’s stock has fallen 12.7 percent so far this year.

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**Social Wavelength**
Social Wavelength is a social media agency founded in 2009 and headquartered in Mumbai. It also has offices in Delhi and Chennai. The company employs over 170 people and serves clients such as Franklin Templeton, Apollo Hospitals, Idea Cellular and GE India Industrial.
WPP did not disclose the financial terms of the deal, but provided information about Social Wavelength’s performance last year. The UK advertising giant said that Wavelength’s revenues for the year ended 31 March 2013 were INR 91.5 million (approximately £0.9 million), with gross assets at the same date of INR59.2 million.

India is one of WPP’s most important markets, with the country accounting for nearly $500 million of WPP revenues in 2013. The company employs almost 13,000 people in the country. Social Wavelength marks WPP’s fifth acquisition in India during the last four years, WPP said.


The group generates annual revenues of about $5 billion across the broader Asia-Pacific region and employs over 48,000 people there.
**M&A in China**
China makes a significant contribution to WPP’s overall performance in the Asia-Pacific. The country represents the group’s third-largest market globally, which last year generated $1.5 billion of revenue for the company. Speaking to CNBC on Monday, Sorrell said that the group’s Chinese business is very strong.

“I often wish that other parts of our business in other parts of the world were as good,” he told CNBC.
WPP bought two companies in China this week – Shanghai-based loyalty programme gift specialist Egift Design and Production and marketing services agency XMKT Group, which is also headquartered in China’s business capital. Sorrell said there will be more acquisitions of Chinese companies in the next couple of weeks.
**As of 13:48 UTC buy WPP shares at 1,203.00p**
**As of 13:48 UTC sell WPP shares at 1,202.00p**

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