Zenith Media looks for buyer
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Morgan Stanley, the US investment bank, has been approaching potential buyers for Zenith Media, the media buying agency which is part of the Cordiant advertising network.
The company's future was thrown into doubt earlier this year after Cordiant announced it was to demerge, floating separately two of its advertising businesses - Bates Dorland and Saatchi & Saatchi - on the stock market. Morgan has approached several media groups.
Zenith is to be jointly owned by Bates and Saatchi, although a separate flotation has not been ruled out. The demerger plan has left all three companies vulnerable to takeover, and Zenith has been attempting to tie up a partnership with another agency - in part as a defensive move to deter predators.
A Morgan insider said that the plan to put together a deal was just a "bright idea", and that the investment house was not acting for Cordiant or Zenith. It is understood advertising agencies and media owners have been approached, but that no single party has entered serious discussions.
A source close to Cordiant admitted: "A number of people are scratching their heads deciding how to make a quick buck out of the parts of Cordiant."
But a spokesman for the holding company said selling Zenith was not on the agenda. He added: "Zenith is owned by Cordiant and it is not for sale. It is part of the architecture of demerger."
He said SBC Warburg was the company's investment bank of record.
No one at Zenith was available for comment last night.
Potential buyers for Zenith could include Martin Sorrell's WPP - which recently paid pounds 10.2m for a 14.4 per cent stake in another media buyer, CIA Group - Aegis, and CIA. Some City sources also suggested management might be interested in buying the outfit.
However, City analysts were unsure how much Zenith could fetch as much of its business is shared with Bates and Saatchi. The company's clients include Burger King and Mars.
Some observers said Zenith was also especially hard to value since several senior executives - in particular Christine Walker, Zenith's high-profile chief executive - had left the company in recent months. Cordiant is capitalised at almost pounds 600m.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments