Photon Group faces market rumours of breakup including sale of BMF and BWM to WPP
Market rumours suggest that Photon Group will be broken up, today’s Australian Financial Review reports.
According to the newspaper, the rumours – which are denied – suggest “One of Macquarie Group’s private equity funds has signed a heads of agreement to buy Photon’s retail field marketing division for $140m”.
The paper also reports a further rumour that WPP Group is looking to buy other parts including ad agencies BMF and BWM.
Although the paper says that both WPP and Photon deny it, the move would make strategic sense. While WPP’s media agencies have largely got back on track over the last couple of years, many of its ad agencies, including The Campaign Palace and GPY&R Sydney are in the doldrums while Ogilvy and JWT are not making a major impact on the market.
BMF and BWM are the only 2 agencies worth having. The rest of the agencies are rats and mice. So it’s a good move for WPP.