Source: Tech Node
Alibaba, Tencent and China Media Capital Holdings (CMC) are in the early phase of discussions about buying about 20% of WPP China. The deal is expected to be valued at between $2bn (£1.52bn) and $2.5bn.
As per the deal, WPP would consolidate its Chinese agency operations into a new holding company.
The resultant group comprising of Alibaba, Tencent and CMC would then get equal shareholdings in the newly formed company. However, WPP Group would retain majority of shares and control.
If the deal comes through, it would bring about quick convergence of the marketing and digital technology sectors at a time when both sectors are undergoing paradigm shift due to quick advances in domains like data analytics.
The deal would also put a focus on the global dominance of Alibaba and Tencent with stock market capitalisations of $480bn (£365bn) and HK$3.57trn (£346bn) respectively.