WPP’s global media investment arm, GroupM has agreed to increase its holding in MediaCom India to become a majority stakeholder. Earlier media veteran Sam Balsara and his family held a controlling stake of 51 per cent in MediaCom India with WPP holding the remaining 49 per cent.
Speaking to Campaign India, Sam Balsara, CMD, Madison World, said, the latest development was in line with their agreement in 2008, when both parties had formed a joint venture. With GroupM increasing its stake to 74 per cent, Sam Balsara and family will hold the remaining 26 per cent in the venture.
A statement from GroupM said that MediaCom India will continue operating as an independent brand. Speaking on the acquisition, CVL Srinivas, CEO, GroupM South Asia, said, “As a network, we have taken giant strides globally and in India, towards a more data and technology-led core to our business. MediaCom India can harness our world-class media infrastructure to provide more value to its clients and people.”
This acquisition continues WPP's strategy of investing in fast growth markets, new media and digital. “As India becomes a very attractive business hub for global clients, we are confident our team in India will deliver exemplary growth and results for all stakeholders,” said Stephen Allan, CEO, MediaCom Worldwide.
Founded in 2007, MediaCom India became a joint venture in 2008. Its key clients include Dell, Edelweiss and Future Group among others. According to a company statement, MediaCom India's revenues were around INR 700 million in 2016 with assets of INR 90 million as of the same date.