What's really stalling Madison’s sale – price, control, or timing?

New Delhi: Advertising veteran Sam Balsara might have to wait a little longer as his attempt to sell the homegrown agency Madison World is dragging on, multiple industry insiders told BestMediaInfo.com.

Fresh talks around Madison’s acquisition surfaced about three months ago, with a couple of players eyeing a takeover of the agency, which has been struggling to retain its large clients over the past year.

The prospect of a sale has hovered over Madison for years, with global majors such as WPP, Publicis and Dentsu exploring potential deals. In May this year, Havas emerged as the frontrunner with a reported Rs 700-crore offer for a majority stake. Yet even that proposal has since hit a roadblock.

“Not sure if that will even happen,” one source told BestMediaInfo.com.

According to people familiar with the matter, Rediffusion chief Sandeep Goyal was the second bidder.

“Goyal’s bid was nearly half of Havas’ offer and has not advanced due to financial considerations,” the source added.

Madison, founded and led by Balsara, sought close to Rs 1,000 crore for a controlling stake, nearly double the Rs 500-crore valuation he had discussed with WPP in 2015.

Industry insiders believe Balsara’s preference to sell in tranches and the exit timelines, rather than a complete exit, has prolonged negotiations.

“Havas may consider starting with a 35-40% minority stake before gradually scaling up. At the same time, since things are not progressing in terms of stake or financially, Havas may also back out,” said an industry veteran.

Even as talks remain inconclusive, Madison has been strengthening its leadership team. Vivek Das, who earlier led the Google India and Southeast Asia business at EssenceMediacom, recently joined as Chief Marketing Officer.

Before that, Ajit Varghese, former JioHotstar Head of Revenue for Entertainment, was appointed partner and Group CEO and is set to take an equity stake in Madison.

He succeeds Vikram Sakhuja, who continues as Executive Director. “Even Sakhuja is waiting in the wings for the deal to happen and take his share of money from the company,” the industry veteran added.

Despite the uncertainty, Madison remains one of India’s most storied advertising agencies, long celebrated for building marquee brands across FMCG, retail and lifestyle categories.

Its independence has been a defining feature, even as conversations with global players have repeatedly broken down. A deal with WPP nearly a decade ago collapsed over valuation and equity issues, while similar talks with Publicis and Dentsu also failed to materialise.

With the agency recently losing marquee accounts including Godrej Consumer Products, McDonald’s, Atomberg and Raymond, and with Marico currently reviewing its business, industry watchers say the pressure on Madison to align with a multinational partner has only grown.