Hedge Funds Short a Billion Pounds Worth of WPP Shares

International media reports estimate that there are now around 81million WPP shares on loan

e4m by exchange4media Staff
Published: Jun 26, 2018 6:00 AM  | 3 min read
WPP

As per international reports, a percentage of WPP shares on loan has risen close to 6% of its share capital in that time according to an analysis by IHS Markit, with the number of WPP shares on loan rising just as the wider FTSE100 experiences a decline in such trades.

The Times reports that this process of ‘shorting’ or 'short selling’ has investors borrowing shares for a fee and selling them with the intention of subsequently buying them back more cheaply at a later date and handing the shares back to their original owner.

International media reports estimate that there are now around 81 million WPP shares on loan, equivalent to around £1 billion based on its current share price, with Marshall Wace and Old Mutual Global Investors amongst those actively shorting the ad giant.

WPP 's market value was slashed by £5.6 billion over the past year, after the exit of Sir Martin Sorrell; adding to that, a wider drop in advertising and increased competition from the likes of Google and Facebook. However, organic net sales slipped only 0.1 percent — compared with a 1 to 1.5 percent drop that analysts had forecast after Sorrell's exit. It was also speculated that WPP could sell its market research arm Kantar instead of heading for a complete break-up of the company built by Sorrell, now valued at around £15 billion.

WPP's new co-Chief Operating Officer, Mark Read has a more positive outlook, saying he had spoken to the group’s top 20 clients since Sorrell’s departure and had been reassured that they were not looking to abandon the company.

Wavemaker, WPP's media agency has recently been appointed as the media agency of record in Canada for Yum! Brands, the food conglomerate which comprises of KFC, Pizza Hut and Taco Bell, following a review which included incumbent Mediacom. The account is said to be worth about $50 million.

With Sorrell now forming a new global communications firm called S4 Capital with heavy backing from institutional investors, WPP is under pressure. Just last week at Cannes Lions, Sorrell, in conversation with author Ken Auletta, said the need for him to start a new company stems from client demand.

“I say it on the basis from what I hear from clients. For example, if you and I were starting a company, you listen to the most prominent CMOs that you’ve mentioned in your book, Mark Pritchard of Procter and Gamble, or Keith Weed of Unilever and you listen carefully to what they say, and what the people who work with them say. They want agencies which are much more flexible, faster, cheaper; agencies who are more global, local, who can relocate with them and agencies that can deal with local clients, as well as the millennial influencers,” said Sorrell.

When asked that with all the knowledge and experience that he has, if he is now starting his new company called S4 Capital to take on WPP, Sorrell called his new company a ‘peanut’ in comparison to WPP.

He quickly added, “S4 Capital of which I am Executive Chairman, is a peanut in comparison, but I do have to admit that some people have peanut allergies."

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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur

The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more

e4m by e4m Staff
Published: Oct 27, 2023 6:15 PM  | 1 min read
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With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.

The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.

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Swapan Seth's new book 'COOL' is out

The book is a reflection of the author's 'eclectic taste across categories'

e4m by e4m Staff
Published: Oct 27, 2023 6:07 PM  | 1 min read
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Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."

The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."

COOL has been published by Simon & Schuster India and is available on Amazon.

Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.

He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.

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Disney Star signs 9 sponsors for Asia Cup PAK

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board

e4m by exchange4media Staff
Published: Aug 26, 2023 11:48 AM  | 1 min read
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e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.

According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.

As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.

A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.

Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.

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Sorted 360 wins creative & social media mandate of Reliance Mall

The agency will manage offline and online campaigns for Reliance Mall

e4m by exchange4media Staff
Published: Aug 26, 2023 10:54 AM  | 1 min read
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Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.

“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.

“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.

"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."

"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."

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KlugKlug onboards Hemang Mehta as Country Manager for Indias

Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments

e4m by exchange4media Staff
Published: Aug 24, 2023 3:35 PM  | 1 min read
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KlugKlug has appointed Hemang Mehta as its Country Manager for India.

Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy

Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.

Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."

Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."

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