Havas in early talks to acquire stake in rival WPP: Reports

New Delhi: French advertising powerhouse Havas is exploring a potential deal with British rival WPP, with discussions focusing on acquiring a minority stake rather than a full merger, according to news reports.

The talks come amid a wave of consolidation in the global advertising sector, including the impending merger between Omnicom and Interpublic Group (IPG).

Quoting sources, certain global news reports stated that the two companies are in "very serious" early-stage discussions, centred primarily on how to value WPP, whose market capitalisation has fallen to around $4.1 billion (£3.1 billion) amid recent challenges. 

Havas, with a market cap of about $1.6 billion (€1.45 billion) and 23,000 employees, has been signalling its appetite for major acquisitions since its spin-off from parent company Vivendi in December 2024. 

Yannick Bolloré, Havas' CEO and son of billionaire Vincent Bolloré, has publicly expressed openness to significant M&A opportunities to bolster the firm's position.

The interest in WPP was first reported by The Times of London, which noted that high-level talks had taken place at Havas' Paris headquarters. WPP, employing over 110,000 people worldwide, has seen its share price plummet 65% since early 2025, down from a peak valuation of £24 billion in 2017. 

The company reported an 8.4% revenue decline in the third quarter of 2025, prompting a strategic overhaul involving AI investments, a new chief innovation officer, and consultations with McKinsey.

Private equity firms, including Apollo and KKR, have also shown interest in WPP, adding to speculation of broader takeover activity. Earlier this year, UK investor Redwheel acquired a 5.25% stake in the company, and consulting giant Accenture had reportedly considered a bid. Havas itself may be looking to raise capital, potentially involving private equity partners, to fund any deal.

Strategically, a stake in WPP could provide Havas with a valuable foothold in one of its largest competitors, enhancing both firms' competitive edge against dominant players like the soon-to-be-combined Omnicom-IPG entity, which will command significant market share. 

Havas has already moved to strengthen its offerings through a joint venture with Horizon Media, pooling $20 billion in media billings. This echoes past Bolloré family manoeuvres, such as their mid-2000s acquisition of a stake in Aegis Group with merger intentions, though that ultimately led to a sale to Dentsu.

Neither Havas nor WPP responded to requests for comment on the reports, which have fueled market curiosity and contributed to a slight uptick in WPP's stock amid hedge fund short positions.