A London-listed marketing conglomerate, Next 15, has been approached about a £200m break-up of its "legacy" advertising and public relations businesses. This move comes as the company faces a leadership shake-up and a misconduct scandal involving one of its Silicon Valley advisory businesses, Mach49.
Key Developments
- Next 15 has been in talks with an unnamed bidder, believed to be a private equity firm, for the sale of its legacy assets, including the financial PR agency MHP.
- The company issued a profit warning and terminated the employment of three senior executives at Mach49 due to "potential serious misconduct."
- David Charpie, previously co-CEO of Mach49, has been appointed as the sole CEO following the dismissals.
- Next 15 is cooperating with law enforcement agencies regarding the misconduct allegations.
Market Impact
With a market capitalisation of about £210m, Next 15 has seen its stock slump by nearly 75% over the past year. The proposed break-up is seen as part of a "simplification strategy" to refocus the business on technology and data-driven client services.
Leadership Changes
- Tim Dyson, CEO for over three decades, is retiring.
- Sam Knights, head of Shopper Media Group, a Next 15 subsidiary, will take over as CEO.
Next 15 has declined to comment on the approach for its assets, which may also include the creative agency Elvis and PR firm Outcast.
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