WPP has sold its stake in sports, entertainment and communications group Chime Communications, as it continues to look for ways to reduce debt.
The holding group will sell its remaining 25% in the business to majority shareholder Providence Equity Partners for £54.4m and potential additional amounts based on the future value of Chime.
The disposal is in line with WPP’s new strategy as set out in December 2018, a key element of which is to focus on its main areas of business and simplify its operations through the disposal of non-core assets.
In Australia, Chime works with creative agency VCCP, research agency Watermelon, sports and entertainment business CSM and CSR and strategy business CSR.
Chime was originally acquired by WPP as part of a partnership deal with the US-based private equity firm, under the leadership of former CEO Martin Sorrell.
The decision by WPP follows the sale of production firm The Farm Group earlier this month, as well as market research agency Kantar, which was put up for sale this year.
The holding group has made it clear in all of its major markets that it will continue to search for ways to cut into its current debt problems, with a global total of £4bn according to its latest full-year results.
The Australia business currently has a debt level of over $415 million, which is inclusive of short and long-term debt.
The business has also begun merging agencies as part of its cost-saving strategy, with the likes of creative agencies VML and Y&R merging to become VMLY&R, while J Walter Thompson and digital agency Wunderman combined to create Wunderman Thompson.
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