WPP to target Photon agencies?
Photon Group companies could end up in the hands of WPP, speculation suggests.
A local WPP source tells today’s edition of The Australian: “Clearly we will be talking about it. Everyone will be doing due diligence on Photon.”
The comments come ahead of a visit to Australia by Hamish McLennan, global boss of WPP’s Young & Rubicam group.
The troubled group has now been suspended from the ASX since the beginning of June.
Hardly surprising…
Can see the headline now, “WPP Deathstar swallows Photon rebellion”
But will the clients and best talent turn to the dark side?
cue a slew of rumours such as ‘CHI & Partners to open shop in Sydney’
There is about as much evidence in this article as in the tabloid journalism you see in the UK gutter press. For God’s sake let’s see some informed reporting for once – I’m no fan of Photon but they employ thousands of people who deserve better than unsubstantiated nonsense that only makes people worry about their livelihood.
Warren vs Hamish be fun to watch.
One knows how to grow a business and one how to shrink one.
I agree with Peter Lorimer, it’s just getting silly now it feels like so many people are wishing Photon would collapse but give a thought to what exactly that would mean to the people that work for the Photon companies
Unfortunately the longer the Photon ‘re-capitalisation’ process drags on, the greater the questions it raises about the financial health & stability of agencies per se, especially the independents.
Hi Peter,
Just to answer your question. The Australian’s article comes from Lara Sinclair, who is well connected with the advertising industry.
It’s clear in that article that she’s got a well placed source in WPP. They presumably (as is often the case) spoke on a non-attribution basis.
The fact that she was confident enough to write the story (and her editor was confident enough to give it a prominent slot) indicates to me that it’s worth treating seriously.
Cheers,
Tim – Mumbrella
Tim, your aticle leads with the word “speculation”. You can try and justify the quality of the source of that speculation but it’s tabloid style rumour mill based lazy journalism. As for the story it suggests that they are talking about Photon – who isn’t? Where’s the story in this? There isn’t one and headlines like this cause the innocent companies in Photon to have real issues – with employees, clients, prospective employees and competitors.
There is a huge consequence to these articles which demands more responsibility and thought when producing them.
Hi Peter,
I recognise that thousands of people’s livelihoods are tied up in Photon. Thankfully most of them work for companies that are profitable in their own right so will be, I’m sure, on the whole okay.
Those hurting most right now will be small investors whose stakes are likely to be wiped out and those who face not receiving the earnouts they were due on the companies they built.
As far as Photon Group’s situation goes, I don’t think the main problem is what is being written about it. It’s gone way beyond that.
Cheers,
Tim – Mumbrella
Tim,
Your response dodges the issue of lazy unsubstantiated journalism. Your article reported unsubtantiated rumour and nothing else and discrupted the lives of many many people pointlessly. Yes Photon is teh cause of all of this but you fan the flames.
Your assertion that Photon agancies will be OK because they are profitable is naive – if Photon goes under then in such a situation anything can happen to these companies and wholly undesirable buyers will circle.
And finally, as to the point that the people who stand to hurt most are the small investors. A huge proportion of Photon shares are owned by a small group of people and it isn’t the sort of company that would attract small investors. And any small investors that had out money in would miosty likelty have put a small amount in. Compare that with thousands of people’s livelihoods.
Hi Peter,
No dodging going on. I’d refer you to my first answer. Just because The Australian didn’t name their source doesn’t make it unsubstantiated. They’ve clearly got a senior source at WPP who has indicated they are looking at it. There was nothing lazy about them doing that – sometimes sources will only share information on that basis.
As to small investors. It is (or was) an ASX company. We’ve had previous postings on this site from people who’ve sunk ten grand into the company and probably doesn’t stand much chance of getting it back.
Actually I said “on the whole” okay, which I stand by. We’re not about to see 5000 people lose their jobs even if Photon fully implodes.
Aren’t you the one who is now doing the scaremongering?
Cheers,
Tim
Tim, the purpose of post was not about who stands to lose more, investors or employees. Of course a lot of different people are suffering because of Photon.
The point was that you posted a story with no actual news at all and in the process caused concern to a lot of people. That is lazy and irresponsible.
I’ve no desire to get embroiled in an ongoing and pointless debate. My point I believe is plainly true and I hope you will think more before posting similar stories.