Adweek
interviewed Sir
Martin Sorrell, who vomited
vitriol in standard Sorrellian style.
The trade
journal stated, “Sir Martin Sorrell has been an expert on M&A for almost
half a century.”
Has he? It
could be argued Sorrell’s expertise seriously eroded over the past decade at
least.
His S4
Capital
venture
seems closer to breakdown than breakthrough.
Meanwhile,
Sorrell’s notorious achievement—WPP—is
a flaming
dumpster. Indeed, the White holding company was death-spiraling
toward a catastrophic
crash landing long before Sir
Peanut pulled the ripcord of his golden parachute.
Sir Martin Sorrell
has been an expert…? At this point, he’s an expert has-been.
Sir Martin
Sorrell Sees No Easy Exit for Holding Companies
Accenture
should buy WPP and more insights from the S4 Capital executive chairman.
By Ryan Joe and
Alison Weissbrot
Sir Martin
Sorrell has been an expert on M&A for almost half a century. He founded WPP
through reverse acquisition in 1985, and built it up into a towering ad giant
that snapped up major agency brands like J. Walter Thompson, Ogilvy &
Mather, and Young & Rubicam.
Following an
ignominious departure in 2018—WPP accused him of misusing company
assets—Sorrell plotted a comeback, founding S4 Capital just weeks later.
S4 built itself
up through acquisition, notably production agency MediaMonks and performance
agency MightyHive, positioning itself as a digital-first holdco. Lately, that
thesis has been severely tested as many tech clients, where S4 has heavy
exposure, pulled back on marketing spend to invest in AI.
Revenue
contracted, and shares fell about 38% over the course of last year, though its
early 2026 results have indicated improvement. S4 currently views itself as
being in a period of stabilizing its business before revisiting
growth-by-acquisition.
ADWEEK sat down
with Sorrell to get his read on the market, who should buy whom, his
competitors (whom he’s never been shy to criticize), and S4’s next steps.
This
interview has been edited for length and clarity. It was conducted before Publicis
said it would buy LiveRamp, and Accenture said it would buy Whalar.
ADWEEK: The
ad agency holdcos have gone from the biggest industry acquirers to acquisition
targets. What’s the outlook?
SIR MARTIN
SORRELL: There are very
few, if any, exits. No activists have stepped in.
There are no
takers. Most of the big deals would involve syndicates. One PE firm couldn’t
write the check for WPP or Dentsu. Maybe Bain Capital could have done it on
their own.
Besides
Publicis, is any big holdco a buyer at this point?
Omnicom
probably isn’t. Dentsu is not going to be in buying mode. Stagwell will try.
The irony may be, this is the time to take the risk because valuations are
so battered. But I don’t think people would take a risk.
If anyone
was going to take a risk, who do you think it would be?
Well, Havas.
Maybe not of scale. But [Havas CEO Yannick] Bolloré always sends you in the
wrong direction. Always. Keeps you guessing.
And I think
Accenture. If I was [Accenture CEO] Julia [Sweet], I would go for WPP. With
them, they could get significantly better. I think the media piece in their
hands would be very valuable. But whether they’ve got the balls though… It
would be messy. But you’ve got David Droga there.
Publicis has
been on a successful run. Is it sustainable?
What Publicis
does—everybody says it’s all proprietary trading, which is why I think The
Trade Desk thing is dangerous territory for them, they’re going to turn the
microscope on themselves—is they look at the client as a whole.
Omnicom and WPP
are falling into the trap of the matrix being driven by capability. The
reorganization of WPP and the reorganization of Omnicom is capability-first,
client second, geography third. Publicis and, indeed, ourselves is geography
first, client second, capability third.
What’s wrong
with organizing around capability?
You have
warring factions. If you do it by country, you have inter-country rivalry,
inter-region rivalry, that’s true, but you get people to integrate what they
do. Publicis got it right. Can they maintain it? Well, the industry wisdom is
these things go in cycles.
Actually, John
Wren, if you look at Omnicom Advertising Group before they acquired IPG, had a
better strategy. He was trying to push them together. Publicis didn’t nudge.
They were quite forceful. And it was painful for them. They were more violent
than probably I would have been. But directionally, it was the same thing.
What do the
holdcos look like in three years?
I don’t know
what [WPP CEO] Cindy [Rose] is going to do. She has huge balance sheet
problems. But I would guess Omnicom will still be here. Publicis will still be
here. Dentsu will be in a different form. Havas will be in a different form.
WPP will be in a different form.
Let’s talk
about S4. You guys had a tech winter. Where are you in all of this?
It’s tough. We
rely on wholesale AI adoption. We really depend on more car verticals, more
financial services verticals, more packaged goods. If we can get a little bit
more traction, it will be fine. But we need more traction. And we’re not
organized enough. Our integration has not been perfect by any means. Liquidity
is much better.
What does
that traction look like and how do you get it?
Traction looks
like building relationships. If you look at our biggest relationships—Google,
Amazon, T-Mobile, Disney, GM, Meta—there’s good stuff there, but the problem is
that 45% of it is tech. And they’re all spending money on capex.