French ad network Havas N.V. is in “very serious” early-stage discussions to acquire a minority stake in WPP plc, according to multiple reports. The move would give Havas a foothold in its much larger cross-industry rival at a time when WPP is navigating declining valuation and investor pressure.
Why Now: WPP Under Strain
WPP’s market cap has reportedly dropped to around £3.1 billion from a peak of £24 billion in 2017. The company is also facing broader financial stress: in recent months, hedge funds have taken a large short position, betting on further share decline, and there’s talk of WPP potentially being removed from the FTSE 100. Meanwhile, WPP is undergoing a strategic review (reportedly with McKinsey’s help) to revamp its operations and business model.
What Havas Could Gain
By acquiring a stake, Havas – which has hinted at aggressive M&A as part of its transformation – could gain significant influence over WPP while strengthening its competitive position against the newly enlarged Omnicom-IPG combo. WPP’s current struggles offer a rare entry point for Havas, especially as the company is positioning itself to scale through technology, data, and AI.
Havas’ Strategy & Position
- Transformation play: Havas is in the midst of a deep transformation under its Converged.AI strategy, planning to invest €400 million by 2027 into AI, data, and tech.
- Deal ambition: According to reports, the company is evaluating whether to use cash or its soon-to-be–listed shares to finance the transaction.
- Bolloré backing: Havas’ CEO Yannick Bolloré (son of billionaire Vincent Bolloré) has publicly signalled openness to large-scale deals post its planned Amsterdam IPO.
Risks & Challenges
- No formal bid has been made yet; talks remain exploratory.
- Valuation is a key sticking point: both companies reportedly are debating how to value WPP under this deal.
- Funding risk: Havas will likely need to tap private equity, debt, or use its upcoming share listing to finance the investment.
- Integration complexity: Even a minority stake could demand significant governance rights or board representation to create meaningful value for Havas.
Looking Ahead
If executed, the deal would mark one of the most significant bets by a challenger agency on a major incumbent. It could reshape competitive dynamics in an ad industry that is already consolidating rapidly. For Havas, this could be a rare opportunity to punch above its weight – combining its AI-led growth strategy with stakeholding in WPP to accelerate its next phase.
