WPP is planning on selling off up to 80 per cent of market research company Kantar.
Speaking on the matter, WPP chief financial officer (CFO) Paul Richardson, the move is part of a larger strategy to address weak performance.
According to Market Watch, Richardson said WPP would keep a remaining stake in Kantar, somewhere between 20 to 49 per cent of the company.
The CFO also suggested that a third of WPP’s business could face structural changes as a way of adjusting to demands from customers and clients.
As per Marketing Watch, Richardson said WPP needs to move away from a big, global networks structure, and shift closer towards the consumer with real-time activity and cost efficiency.
In late October, B&T reported WPP CEO Mark Read said the agency needed “decisive action and radical thinking”, and confirmed Kantar was on the market.
WPP’s boss said that while he believes in the potential for Kantar to become the world’s leading data, insights and consulting company, the group needs to make tough choices given its priorities.
“We believe that the best way to unlock this potential is with a strategic or financial partner,” Read said.
“The board has approved a formal process to review the strategic options that will maximise shareowner value. It is envisaged that WPP will remain a shareowner with strategic links to ensure that the benefits to clients are realised.
“Preparations are underway, involving Kantar management, and unsolicited expressions of interest have been received.”