WPP shares rise over 5% amid acquisition reports

Shares of WPP rose as much as 6.6% on Monday after The Times reported that the British advertising group has attracted takeover interest from French rival Havas and private equity firms Apollo and KKR. The surge comes even as the ad agency stock remains down more than 60% year-to-date, leaving the company with a market valuation of about £3 billion ($3.95 billion), according to Reuters.

Despite Monday’s rise, the shares continue to trade near 27-year lows. The agency, founded in 1985 by Martin Sorrell, recently warned of lower profit after reporting a worse-than-expected 5.9% decline in like-for-like net revenue. It is currently undergoing an operational overhaul under new CEO Cindy Rose, with a focus on simplifying operations and strengthening data and AI capabilities.

Meanwhile, industry developments suggest the potential WPP-Havas interest may be part of wider consolidation activity in the advertising sector. The partnership between the agencies is being explored, with one source describing ‘serious talks,’ while another said WPP has not engaged in discussions. Several people familiar with the matter said Havas is considering raising capital, possibly involving private equity, to assess the viability of a potential deal, according to a media report.

A merger between these agencies would create the world’s second-largest agency group by revenue, following Omnicom’s pending completion of its acquisition of Interpublic Group.

Havas has recently signaled openness to partnerships. During its October earnings call, CFO and COO François Laroze said the company would consider a partnership or deal with Dentsu. It also launched a joint venture with Horizon Media.

Industry executives cited the report, noting that an acquisition by WPP could be difficult given its weakened financial position and depressed share price. The agency lowered its full-year organic revenue growth guidance after weak third-quarter results. Other industry leaders believe a deal could help bolster WPP’s value, though its shares have fallen more than 60% since the start of 2025.