- Firm in talks with another UK agency
- No discussion of price in statement
- S4 shares still down 30% this year
The UK takeover train continues to trundle on with confirmation today from digital advertising agency S4 Capital (SFOR) it has received an approach from rival UK agency MSQ Partners.
S4 shares initially jumped 3.75p or 17% to 24.95p but fell back to 22.4p for a gain of 1.2p or just under 6% by mid-morning.
JOINING HANDS
The London-based advertising firm, helmed by executive chair Martin Sorrell, has had a tough 2025 which is reflected in the 30% fall in its share price year-to-date.
In June, the company warned full-year revenue would miss expectations due to reduced ad spending by customers as a result of increased economic uncertainty.
At the firm’s annual general meeting, Sorrell noted ‘wider market uncertainty and significant volatility in global economic policy, particularly as a result of the US-imposed tariffs’.
S4 has a significant US client base including companies such as Amazon (AMZN:NASDAQ), General Motors (GM:NYSE) and T-Mobile US (TMUS:NASDAQ).
Responding to weekend press talk of an approach, S4 acknowledged it was in talks with MSQ Capital, which is owned by US buyout firm One Equity Partners.
While talks are said to be at an early stage, and no price was revealed in the statement, assuming a deal goes ahead it would be structured as a buyout of MSQ by S4 rather than a simple merger.
