By Lindsay Rittenhouse, Ad Age
The deal, anticipated since its proposal in June, is subject to various approvals including by MDC shareholders, but the companies hope to complete the transaction in the first half of 2021. Stagwell and MDC say the merged business will have an estimated pro forma revenue of about $2.1 billion for 2020.
What should we expect on the branding front? The value in MDC is its agency brands, yet the name arguably carries some baggage. Stagwell will control things under the deal, so would it make sense to name the company Stagwell?
I heard a few weeks ago that you hired MediaLink to lead some sort of assessment on the merger. Can you give any color on that partnership?
How will Stagwell agencies fit into these clusters you’ve been forming within MDC? You mentioned on the investor call this morning that Code and Theory had worked with Doner on a pitch. Might that shop, for example, join the Doner-led network or will agencies be merged and reduced?
You will be chairman and CEO of the merged company. Can you give any insight into who else will sit on the management team?
Is the $30 million in projected cost savings realistic? Investor slides show where it would come from—$10 million from “media.” Can you explain that?
How does Stagwell fit into this real estate consolidation? Will we see MDC and Stagwell sharing offices?
Do you expect layoffs? How many jobs will be cut in that $30 million in cost savings?
There was a quote that made headlines in November when Domino’s sent its account from CPB to WorkinProgress. Domino’s Chief Marketing Officer Art D’Elia said the company prefers the flexibility of an independent model over a holding company model. What do you make of this argument that holding companies aren’t as flexible or efficient as independents?
What is the future of your creative agencies, and CPB and Anomaly in particular? Both those agencies have struggled recently with layoffs and account losses.
What really happened with Alex Bogusky and what does the future of CPB look like without his leadership? The co-founder left the agency at the start of 2020 less than 18 months after he returned.
WPP sold its research business, Kantar. Why does it make sense for MDC and Stagwell to keep a research business?
In June, you said the combined business would be worth $4.25 a share. The stock today, the morning after the formal deal announcement, is trading around $2.48, not much above Monday’s close of $2.23. What happened to that $4.25 valuation?
What are your predictions for 2021 in terms of new business growth and how this merged company will fit into an evolving, post-pandemic industry?
(Source: This article was originally published by Ad Age.)