, which are dominating the digital advertising market and source a heavy portion of their revenues from online ads. But both companies face looming regulatory risks though, and calls are increasing for such tech giants to be broken up.
For WPP, which for decades had been on an acquisition spree, the focus since Sorrell's departure has been to sell off holdings in some units — most notably its 60% stake in market research group Kantar, which itS4 Capital , which he created after acquiring a shell company listed on the London Stock Exchange. The group has already made a takeover deal, outbidding WPP to buy Dutch online ad agency Media Monks last year.
He added that WPP — which he still holds a stake in — has "outlived its purpose" and is having to make "legacy cuts" to remain relevant. S4 on the other hand, he said, has a "clean" balance sheet and has been growing its top line by 40% to 45%. Each morning, the “Beyond the Valley” newsletter brings you all the latest from the vast, dynamic world of tech – outside the Silicon Valley.