Sorrell-WPP War Escalates As Lawyers Called And $36 Million Payout Withheld

Sir Martin Sorrell’s departure from WPP has descended even further after lawyers for the company he founded were called in.

Sorrell, of course, left WPP abruptly in April amid allegations of impropriety and he has since manoeuvred to start his own media business apparently in direct competition with WPP’s offerings.

His first potential takeover target was a $536 million buyout of the Dutch-based digital production business MediaMonks. However, MediaMonks is fielding offers from a number of other potential buyers, including WPP.

WPP believes that Sorrell’s overtures towards MediaMonks are “likely to be in breach of his confidentiality obligations” when he left the business and its lawyers have said it will withhold £20 million ($A36 million) in future payouts Sorrell is owed by WPP if he progresses with any potential takeover.

When Sorrell left WPP under a cloud of personal misconduct it was deemed he’d retired and would be paid the $36 million over the next decade based on payouts relating to share awards.

Both Sorrell and WPP have declined to comment on the matter thus far. However, Sorrell’s lawyers are disputing the claims and asking for WPP to provide evidence for its allegations.

The 74-year-old Sorrell had previously said that he would not compete against WPP, however, industry commentators think that is highly unlikely due to his competitive nature.

Sorrell has labelled his next venture as a “next generation” advertising group and is reportedly building a £1 billion ($A1.8 billion) war chest from investors to start and future-proof the project.




Please login with linkedin to comment

sir martin sorrell WPP WPPAUNZ

Latest News

Sydney Comedy Festival: Taking The City & Social Media By Storm
  • Media

Sydney Comedy Festival: Taking The City & Social Media By Storm

Sydney Comedy Festival 2024 is live and ready to rumble, showing the best of international and homegrown talent at a host of venues around town. As usual, it’s hot on the heels of its big sister, the giant that is the Melbourne International Comedy Festival, picking up some acts as they continue on their own […]

Global Marketers Descend For AANA’s RESET For Growth
  • Advertising

Global Marketers Descend For AANA’s RESET For Growth

The Australian Association of National Advertisers (AANA) has announced the final epic lineup of local and global marketing powerhouses for RESET for Growth 2024. Lead image: Josh Faulks, chief executive officer, AANA  Back in 2000, a woman with no business experience opened her first juice bar in Adelaide. The idea was brilliantly simple: make healthy […]