To report a factual error in this article. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. MDC Shareholders Approve Merger With Stagwell Group - Adweek - The valuation doesn't seem like a stretch to us. A spokesperson declined to comment on how much of that total comes from the Media Group agencies but said they collectively manage close to $5 billion in annual ad buys. Join the brightest minds in marketing at Brandweek in Miami this September 1114. Online Research is also growing again, used by Hollywood movie studios and OTT streaming services. MDC Partners and Stagwell Group have finally completed their proposed merger, announced in December, after a lengthy back-and-forth with MDC shareholders. Johnson focuses on data and financial topics related to marketing, advertising and media. If you have an ad-blocker enabled you may be blocked from proceeding. By Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. Activate your account. MDC Partners' Proposed Stagwell Merger Faces Growing Investor - Insider CEO James Townsend said Stagwell Media is hiring and plans to make acquisitions in coming months. No comments have been submitted for this story yet. MDC Partners Inc's (NASDAQ: MDCA) shareholders voted to approve the previously announced business combination of MDC with certain subsidiaries of Stagwell . Insider spoke to two other investors, including a top-10 shareholder, who said they also thought MDC shareholders should own more and that they believed the proposed merger faced significant risks. The result of this proposed change in share consideration is that, on a pro forma basis, the pre-transaction MDC common shareholders would own approximately 31% of the common equity of the combined company while Stagwell will receive approximately 69% of the common equity of the combined company. Like MDC, here too strong growth in adjusted EBITDA and net income is a lot higher at $17.35M, which was a huge jump from the $4.27M in Q2 last year against a tough comp due to the benefit of political spending last year. 23, 2021 By Kevin McCauley. Stagwells announcement said it expects MDC's board will form a special committee consisting of independent directors, and that the special committee would retain independent financial and legal advisors to consider the proposal. - 2 days 14 hours ago. As of Monday, MDC Partners board of directors had approved the merger, although it will still be subject to further approvals. - There is a mild risk from the pandemic reducing ad spend in affected sectors. Stagwell, which has raised more than $510 million in total capital, bought a minority stake in MDC for $100 million in early 2019 and Penn became CEO of MDC. Join the brightest minds in marketing at Brandweek in Miami this September 1114. MDC Partners and Stagwell Media confirms merger - Seeking Alpha Stagwell Group initially proposed the merger in June. Adjusted EBITDA for 2021, on the same pro forma basis, is estimated to be $342 million to $357 million excluding synergies. There were notable new client wins as well (Q1CC): J&Js LUBRIDERM brand; Travelocity and LL Bean at Doner; an expanded relationship with AB InBev at 72andSunny, adding projects for their Jupiler, Leffe and Becks brands out of Amsterdam; the Swedish gaming lottery at F&B; AAA [ph] at YML, Sub-Zero, Wolf, Cove at Hunter; Puma Biotech; and more work with Novo Nordisk at Concentric; Dennys, won by Anomaly out of their New York office and Nespresso with a global brief led by Anomalys Berlin office, plus multiple new assignments with Diageo. We look at companies with a defensible competitive advantage and the opportunity and/or business models which have the potential to generate considerable operational leverage. I would like to thank our shareholders for their approval of the combination with Stagwell and for recognizing this was a unique opportunity to create a new marketing machine that can transform the industry and create enhanced opportunities for growth and value in the marketplace, Mark Penn, chairman To Read the Full Story Become an Adweek+ Subscriber. Penn added the post of MDC chairman in April 2019. A letter from Indaba managing partner Derek Schrier claimed that MDC and Stagwell chief Mark Penn had "all the incentives to root for Stagwell" and that he could "make a fortune" from the merger. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. There was $42M in wins versus $32M in losses in Q1. I wrote this article myself, and it expresses my own opinions. .css-16c7pto-SnippetSignInLink{-webkit-text-decoration:underline;text-decoration:underline;cursor:pointer;}Sign In, Copyright 2023 Dow Jones & Company, Inc. All Rights Reserved. The Stagwell Group to Recommend the Appointment of Madison Avenue Partners' Eli Samaha to the MDC Partners Board of Directors at Close of the Merger of MDC and Stagwell. Register now to save 20%. Stagwell Media will own 69% of the combined company, the Wall Street Journal reported. Tranche Update on Stagwell Inc.'s Equity Buyback Plan announced on May 9, 2023. Under Penns tenure as CEO, MDC has worked to simplify its structure. Penn has pursued cost cuts through moves like consolidating office space into newly leased officesat One World Trade Center in New York. The merger proposal values MDC common stock at$4.25 ashare on a fully diluted basis and implies a premium of 263 percent to MDC's closing price of $1.17 per share on June 24, according to the press release. Adrianne Pasquarelli Copyright 2023 Surperformance. Each Paired Equity Interest would be exchangeable, at the holder's election, for one MDC Class A share. MDC Partners MDC Partners' proposed merger with Stagwell Group is facing growing. Report here. NEW YORK, Dec. 21, 2020 /PRNewswire/ -- MDC Partners Inc. ("MDC") (NASDAQ: MDCA) and Stagwell Media LP ("Stagwell") announced today that they have entered into a definitive transaction. Mark Penn, chairman and CEO . Last year obviously was a difficult period but cash flow is already back on track in both companies. Stagwell and MDC Partners will combine and in exchange, Stagwell would receive 335.5 million Class A Shares of MDC Partners. Q1 was still affected by the pandemic though, which can be seen by the sectors that are still not above water in terms of marketing spending: But management noted that each successive quarter, the decline in revenues has gotten less; 28% in Q2 of 2020, 17% in Q3, 14% in Q4 and just 6% in Q1 2021. Copyright 2023 Dow Jones & Company, Inc. All Rights Reserved. Stagwell already had a substantial part (19%) of the Class A MDC shares, so the merger didn't come out of anywhere. Shareholder of MDC Partners Opposes Merger With Stagwell Mark Penn's Stagwell Group Proposes Merger With MDC Partners - Adweek ICR Inc. represents Pinstripes as the dining and entertainment brand plans to go public via a SPAC deal with Banyan Acquisition Corp. valued at $520M. Register now to save 20%. It ended Q2 with $73.4M in cash, and paid $4.6M in interest in H1. Please disable your ad-blocker and refresh. It ended up with 77.6% support of shares cast at the July 26 special meeting of shareholders, according to Ad Age Datacenters calculations based on the share vote disclosed in an MDC regulatory filing today. Stay up to date with what you want to know. In its letter to Indaba, the MDC committee wrote that it was created with the purpose of mitigating any potential conflict of interest stemming from the fact that Penn leads both organizations and that it negotiated against him for more than six months. The company has pointed to a near-400% increase in MDC's share price since the merger was announced as evidence that the deal will benefit MDC investors. Leverage your professional network, and get hired. Paris Ile-de-France Chamber of Commerce and Industry It's been on the market since January but has already been sold to 5 clients with another 23 in a trial period. Entering text into the input field will update the search result below. MDC Partners and Stagwell, both led by Mark . MDC Partners today adjourned its June 22 special meeting of shareholders to vote on its combination with Mark Penns Stagwell Media LP until July 19. The improvement in adjusted EBITDA is perhaps most notable, coming in at $60.3M but a small net income, just $1.7M, it's interesting to see what causes that substantial gap (which is a lot smaller for Stagwell standalone). Ex-Microsoft strategist Penn launched Stagwell Group in 2015 after raising $250 million in funding, including from former Microsoft CEO Steve Ballmer. [2] The merger was completed in August 2021. From the 10-Q: The number of common shares outstanding as of July 23, 2021 was 77,563,885 Class A subordinate voting shares and 3,743 Class B multiple voting shares And these have (after 12% MDC shareholder Indaba Capital Management went to war) been upgraded from the initially proposed 18.5% to 26% and finally 31% of the combined company. Dec. 24, 2020 - 5:00 - MDC Partners CEO Mark Penn reacts to the major marketing merger with Stagwell. Bradley Johnson is Ad Age's director of data analytics and runs Ad Age Datacenter with colleague Kevin Brown. Aside from the financial benefits ($30M in synergies, $200M+ in cash generation, and a lowering of net leverage to 3.4x in 2021) probably the most significant benefit is that adding Stagwell will triple the contribution of high-growth digital services and expertise. Its holdings include Code and Theory, FINN Partners and ForwardPMX. MDC Partners (MDCA) has merged with The Stagwell Group and they have begun trading under the ticker NASDAQ:STGW as Stagwell Inc. since August 3, 2021. That has turned out pretty well so far: MDC Partners, a global marketing company, had a rough time the last year and a half. Mark Penn Reveals How MDC Stagwell Merger Can Take on WPP, Accenture Stagwell Marketing Group LLC completed the acquisition MDC Partners Inc After Indaba released its letter, Stagwell issued. Stagwell Media proposes combination with MDC Partners, MDCA shares +149%. 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History [ edit ] MDC Partners was founded as Multi Discipline Communications in 1980 [4] in Toronto by Miles Nadal. That has turned out pretty well so. Shareholder of MDC Partners Opposes Merger With Stagwell - WSJ News Corp is a global, diversified media and information services company focused on creating and distributing authoritative and. Found a factual error? The second investor outlined a scenario where MDC could continue as an independent company if the deal falls through and partner with outside agencies unaffiliated with either network to pitch for new business rather than expanding through M&A. our Subscriber Agreement and by copyright law. "I am excited about the potential combination of MDC Partners and Stagwell and expect the combined company will deliver meaningful shareholder value creation, accelerated growth and enhanced services to clients," he stated in a press release. I have no business relationship with any company whose stock is mentioned in this article. On August 4, Stagwell Group and MDC Partners reported second quarter organic revenue growth of 33% and 26%. Looking for more investing ideas like this one? Seeking Alpha's Disclosure: Past performance is no guarantee of future results. Then there is an influencer brand platform, and they are going to put more structure around these relatively new initiatives, like a single sales team. "If they get three or four others to agree, the deal is off.". The Stagwell Group late today proposed a merger with MDC Partners in a move that would combine two firms led by Mark Penn into a $2 billion agency group. That has the potential to be $1 million a year of sales. Instrumental for the wins was the Locate SaaS campaign management platform, which came out of Stagwell technology so they have been instrumental here as well. MDC Partners and Stagwell Group Agree to Merge - Adweek Get directions MapQuest Travel Route Planner Print your map Get help Search the web Send feedback The address of Stagwell is 1808 Eye Street, Floor 6, Washington, D.C., 20006. The recent constructive dialogue amongst all parties helped us reach a deal that is in the best interests of MDC shareholders and leaves the combined company well-positioned to create growth and cash flow while generating value for all MDC shareholders.. O'Dwyer Company, Inc. Sign Up for O'Dwyer's Daily PR News Blast. Well explore the promising trends, proven solutions and pressing challenges facing the industry. Singer Associates represents Anchor Brewing, which bills itself as Americas first craft brewer, as Japans Sapporo decides to pull the plug on the iconic San Francisco beer maker that it acquired in 2017. MDC Reschedules Stagwell Merger Meeting - O'Dwyers PR PRophet, an AI PR tool developed by Stagwell with predictive capabilities on how campaigns will be received. company have the potential to produce 5%+ annual organic revenue growth driven by 10%-15% digital marketing growth and complementary capabilities, and 9%+ total annual revenue growth including new products and acquisitions, decrease net leverage from 4.2x to 3.4x and deliver over $200M of pro forma cash generation in 2021. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. "We have the capabilities of the traditional networks without the baggage," he said. Jun 2, 2021 MDC Partners shareholder opposes looming merger with Stagwell Indaba Capital Management says the deal's terms favor Stagwell. One of the two investors said they thought Indaba might have enough support to at least delay the deal. Gladstone Place Partners and ICR are taking Oklo nuclear fission startup that is backed by Open AI CEO Sam Altman public via a merger with his AltC Acquisition Corp. blank check company. Johnson focuses on data and financial topics related to marketing, advertising and media. Existing MDC Class A and Class B shares will receive 26% of the common equity of the combined company, and Stagwell will receive share consideration equal to 74%. You may unsubscribe at any time. Johnson has held Ad Age posts in Chicago, Los Angeles and New York including editor at large, deputy editor, interactive editor, bureau chief and reporter. Management expects the SaaS products to deliver $75M in revenues within four years. As per the terms, Stagwell will acquire MDC Partners' shares for $4.25 per share. MDC Partners' planned merger with Stagwell Group is facing mounting opposition from MDC investors who say the deal would be unfair to them. The deal, completed on Monday during a special shareholder meeting, will rename the combined entity Stagwell Inc., which will trade on the NASDAQ under the ticker STGW. This copy is for your personal, non-commercial use only. The launch came in response to advertisers' increased demands to have a range of services in one place so they can avoid hiring several different agencies, said Townsend. Stagwell - Wikiwand We add real-time buy and sell signals on these, as well as other trading opportunities which we provide in our active chat community. There is likely to be more operational leverage which gets another boost through the merger synergies. Shareholder of MDC Partners Opposes Merger With Stagwell. The proceeds will be used to redeem the $870.3M outstanding 7.5% note due in 2024 and reduce other credit facility borrowings. MDCs stock has struggled to gain traction with investors. Published on June 25, 2020. This story has been updated with a statement from MDC Partners. Stagwell Marketing Group LLC made a non-binding proposal to acquire MDC Partners Inc. (NasdaqGS:MDCA) from Indaba Capital Management, L.P. and others for approximately $250 million in a reverse merger transaction on June 25, 2020. MDC Partners Inc. -- Moody's upgrades MDC Partners' CFR to B2 on merger Providing a marketplace service Shareholdersunite Portfolio. Please. Entering text into the input field will update the search result below. MDC Partners adjournsts June 22 special meeting of shareholders until July 19. Stagwell Launches Media Group in First Post-Merger Move - Business Insider
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