WPP, the FTSE-100 marketing services group, is in talks to sell a provider of in-flight entertainment which counts some of the world’s leading airlines among its clients. Sky News has learnt that the London-listed owner of advertising agencies such as Ogilvy, is working with bankers on a disposal of Spafax, which it bought a quarter of a century ago.
Sources said on Friday that WPP hoped to fetch between £50m and £75m for Spafax. While the proceeds would not be material to a company with a market capitalisation of £6.8bn, the process highlights the pressure on Mark Read, its chief executive. Shares in WPP have fallen sharply during his tenure, and have slid a further 13% during the last 12 months.
The company’s new chairman – former BT Group chief Philip Jansen – is keen to oversee a reshaping of WPP to embrace rapid developments in artificial intelligence. WPP acquired Spafax in 2000 when the group was run by Sir Martin Sorrell. At that point, Spafax published the Tate Galleries’ in-house magazine as well as providing in-flight media services to dozens of airlines.
Suitors for the business, whose clients have included British Airways, Emirates, JetBlue, and Latam, are said to include trade bidders and private equity firms. The sale is being handled by JEGI CLARITY, an adviser on media industry deals.
A WPP spokesman declined to comment.
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