A London-listed marketing conglomerate that dismissed three of its top executives this week is being considered for a £200m break-up.
Sky News has learned that Next 15 is in discussions regarding the sale of its «legacy» assets, which include the financial public relations agency MHP, with an undisclosed bidder.
This move would result in the remaining part of the business focusing on technology and data-driven client businesses.
According to one industry source, the potential buyer is believed to be a private equity firm.
Next 15 issued a profit warning and underwent leadership changes this week following the disclosure of «potential serious misconduct» related to Mach49, a Silicon Valley advisory business it owns.
«As a result, Next 15 has terminated the employment of three senior management members at Mach49 – Linda Yates, Russ Lampert, and Paul Holland. David Charpie, currently co-CEO of Mach49, will assume the role of sole CEO with immediate effect,» the company stated in a stock exchange announcement on Wednesday.
«Next 15, on behalf of Mach49, is in the process of reporting these matters to relevant law enforcement agencies.
«It is too early to determine the outcome, but Next 15 will ensure full cooperation with those agencies.»
The company, which has a market value of approximately £210m, has seen its stock plummet by nearly 75% over the past year.
This week, it was also revealed that Tim Dyson, the chief executive for over three decades, would be retiring and replaced by Sam Knights, the head of Shopper Media Group, a subsidiary of Next 15.
A source close to Next 15 emphasized that any potential break-up would align with the «simplification strategy» previously mentioned publicly.
Next 15 declined to comment on the bid for some of its assets, which are believed to include the creative agency Elvis and Outcast, another PR firm.