Big.Shift.Snapshot.July.2011

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"THE BIG SHIFT: Tracking Convergence Media" (July 2011). This quarterly report follows trends, transactions and news in the rapidly converging media, entertainment, and marketing sectors.

"THE BIG SHIFT: Tracking Convergence Media" (July 2011). This quarterly report follows trends, transactions and news in the rapidly converging media, entertainment, and marketing sectors.

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  • 1. THE BIG SHIFTTra cking Convergence Media July 2011Focus of this Issue: Digital Media AcquisitionsIncrease Global Footprint For The Majors---WPPON A TEAR!WPP Acquires Who Digital in VietnamFrom company Press Releases on March 22, 2011WPP announces that it has agreed to acquire the business of Who Digital, theleading full service digital agency in Vietnam, subject to regulatory approval. WhoDigital and OgilvyOne in Vietnam will form a joint venture in which WPP will take amajority stake.Founded in 2005, Who Digital employs 25 people and is based in Ho Chi Minh City.Clients include Unilever, Megastar, HSBC, Baoviet and Sony Ericsson.Who Digital’s unaudited gross assets as 31 December 2010 were VND 13.8 billion(USD $668,443).This investment continues WPP’s strategy of developing its networks in fast growingmarkets and sectors. Vietnam is a key market, where WPP has been operationalthrough its companies for more than 10 years. Vietnam is one of the fastest growingmarkets in the world, identified by Goldman Sachs as one of the Next 11 worldeconomies to watch. It has a population of 87 million and a forecast GDP growthrate of 7% in 2011, according to HSBC.In 2009, Ogilvy acquired a majority stake in T&A Communications, a leading publicrelations and events agency in Vietnam. Prior to that, WPP acquired 20% of SmartMedia, and GroupM, WPPs media division, took stakes in three subsidiaries of theDacvietVAC Group Holdings. For More Information about Opportunities in the Sector or GT’s Capabilities: Troy Centazzo Greg Chambers 310.846.5009 310.460.8968 troy.centazzo@growthink.com greg.chambers@growthink.com 1
  • 2. WPP Invests in Vice Media, a Leading Global Youth MediaBrandFrom company Press Releases on April 5, 2011WPP announces that it has acquired a minority stake in Vice Holdings, Inc., (“ViceMedia”) a leading global youth media brand, operating in over 30 countries.Vice Media was launched in 1994 in Montreal, Canada and works with such clientsas Intel, Dell, Levis and Vitamin Water. Vice Media operates a magazine and bookpublishing division, a music division, VBS.TV, Viceland.com, Virtue Worldwide (a fullservice agency), AdVice (an online activation network) and a series of digitalchannels built around online content verticals.Vice Medias unaudited gross assets for the year ended 31 December 2010 wereUSD $34.3 million. This investment further develops WPP’s content capabilities,particularly in new media, the youth consumer segment, and fast growing marketsand sectors.WPP Agrees to Acquire Commarco GmbH, a LeadingMarketing Services NetworkFrom company Press Releases on April 19, 2011WPP announces that it has agreed to acquire, subject to regulatory approval, theentire issued share capital of Commarco GmbH, a leading German-based marketingservices network.Commarco is the parent company of several agency brands, which include themuch-awarded Scholz & Friends marketing services network, founded in 1981 inHamburg; integrated communications agency deepblue networks; relationshipmarketing agency gkk DialogGroup and production agency United Visions.Headquartered in Hamburg, the Commarco group employs more than 1,200 peoplein its offices throughout Germany, Switzerland and selected international markets.Clients include American Express, Commerzbank, Credit Suisse, Deutsche Bahn,Deutsche Bank, ING, Lenovo, Loewe, Mercedes, Opel, Siemens, Tchibo, Unileverand Vodafone.Commarcos gross revenues for the year ended 31 December 2010 were Euro 132.9million (USD $190.2 million), with gross assets at the same date of Euro 98.6 million(USD $141.1 million). Germany is WPPs 3rd largest market after the US and UKand is showing signs of strength following the recession, as Central and EasternEurope grow faster than Western Europe, particularly in Germany, Poland andRussia. 2
  • 3. WPP Digital Makes Strategic Investment in nParioFrom company Press Releases on May 17, 2011WPP Digital, the digital arm of WPP, announces that it has made a strategicinvestment of USD $5 million for a minority stake in nPario Inc. ("nPario"), a leadingprovider of technology solutions and applications designed to analyze extremelylarge volumes of online and offline consumer data (“big data”) for monetization andmarketing optimization.nPario’s founding team has worked on the largest data sets in the world forcompanies including Microsoft, Yahoo, Adobe, Oracle and SAS. Its clients includeinteractive entertainment provider Electronic Arts, as well as global logistics providerAramex and telecommunications service providers Jawwal and Umniah.Following the investment, WPP and nPario will form a strategic partnership that willintegrate online and offline data from WPP’s Media Innovation Group and Kantarunits into the nPario platform. The collaboration will result in the development of newsolutions to help marketers and publishers gain faster access to audience insightsand increase the effectiveness of marketing investments. This investment continuesWPPs strategy of partnering and investing in measurable marketing disciplines.WPP Acquires Majority Stake in F.biz, an Independent DigitalAgency in BrazilFrom company Press Releases on June 2, 2011LONDON — WPP [NASDAQ:WPPGY], the world’s largest communications servicesgroup, announces that it has acquired 70% of F.biz Ltda., the largest independentdigital advertising agency in Brazil.The São Paulo based agency was founded in 1999 and has enjoyed an annualgrowth rate of nearly 50% since then. The agency employs 200 people and servicesclients such as Unilever, Campari, Itaú, Vivo and NetShoes. F.biz’ CEO GalBarradas said, “By taking this stake in our company, WPP will enable us to offer thebest and most complete service to clients. Our focus is on strategic brandpositioning and our intention is to offer new models in the communications market.Were just beginning.” F.biz’ managing partners, Barradas, Marcelo Castelo,Marcello Hummel, Paulo Loeb, Pedro Reiss and Roberto Grosman, will remain intheir current positions.This acquisition of the leading independent digital agency in the dynamic Brazilianmarket is central to WPP’s overall strategy of expanding its capabilities in the digital,direct and interactive disciplines and strengthening its presence in faster growingmarkets. Collectively, including associates, the Group employs over 4,500 people in 3
  • 4. Brazil, WPPs eighth largest market, generating revenues of over R$1.1 billion (USD$690.5 million). Based on the last two years billings figures*, WPP’s full-serviceagency networks rank one, two and three in Brazil, and as a Group, WPP ranksnumber one by a considerable distance with billings in 2010* of nearly R$11 (USD$6.9 billion).* Source: IBOPE Monitor Rate Card BillingsOmnicom Group and AOL Team Up to Make Creativity andTechnology Work TogetherFrom PRNewswire via COMTEX/ -- March 10, 2011Omnicom Group Inc. (NYSE: OMC) and AOL Inc. (NYSE: AOL) have formed apartnership to infuse digital technology into the beginning of the creative processand enrich creative executions through a more cohesive use of technology incampaigns.AOL will appoint an Omnicom Creative Ambassador, dedicated to bringing Omnicomcreative agencies closer to AOL, as Omnicom works to build a stronger relationshipbetween these agencies and media companies such as AOL."Wherever there is anopportunity to enhance campaigns through innovative products and technologies,the Creative Ambassador will be brought into the process and play an important rolein the creation of powerful and engaging brand programs," Omnicom Digital CEOJonathan Nelson said.AOL will also take part in a pilot of Rosetta, a new technology employed byOmnicom to define disparate audience segments, create a universal language, andeliminate the disconnect between multiple industry definitions and currencies in thetargeting space.Through Rosetta, the aim is to create a framework for connecting these disparatetargeting languages. In effect, Rosetta will translate syndicated targetmethodologies, premium network targets, and other digital audience buys. This willappear seamless to the user, with the complexities handled behind the scenes. Byunifying these languages, Rosetta will allow learnings to be carried forward,audience definitions based on network context to be continually sharpened, andprocesses made more efficient."The Rosetta technology," Nelson said, "is designed to give advertisers andagencies better and more cost-effective solutions to measurement competenceacross media properties and channels, with the goal of creating considerableefficiencies in the planning and buying process.""Both elements of this partnership will help build stronger relationships at all levelswhere content and advertising can work together creating superior engagementacross brands," said Jeff Levick, president of global advertising and strategy, AOL. 4
  • 5. Omnicom Groups Ketchum Acquires Indias Sampark PRFrom PRNewswire via COMTEX/ -- April 12, 2011Omnicom Groups (NYSE: OMC) Ketchum, a leading global marketing and corporatecommunications consultancy that is part of Omnicoms Diversified Agency Services(DAS) division, has taken a majority position in Sampark PR, a full-service Indianpublic relations company. The firm, to be renamed Ketchum Sampark, will be co-ledby Bela Rajan, director, and N.S. Rajan, managing director, who founded thecompany 17 years ago.The transaction bolsters Ketchums presence in the AsiaPacific region, which is comprised of offices in Greater China, Australia, Indonesia,Japan, the Philippines, Singapore, South Korea and Thailand.As part of the transaction, the agency will expand its board of directors to include,among others, Tom Harrison, Chairman and CEO of DAS. Harrison commented:"Ketchums expansion into India builds on its recent acquisitions and is anotherexample of our commitment to offer clients the most comprehensive range ofservices available in the places where they are doing business and they wish us torepresent them and their brands."Sampark PR provides communications counsel in financial and corporatecommunications, investor relations, issues and crisis management, technology,brand marketing and infrastructure expertise.Today, Sampark PR handles acombination of Indian domestic clients and Ketchum global network clients across abroad range of industries, including automotive, finance, healthcare, technology andtravel, among others. JUNE AT A GLANCE TYPE DEAL DATE AM OUNTAcquisition Google Buying DVR Software Maker SageTV June 20, 2011 N/AVenture Cap Spotify Secures Its Funding For International June 17, 2011 $100 million ExpansionAcquisition Ad Services Provider DG Buys MediaMind June 16, 2011 $517 million For $517 millionVenture Cap Tapad Raises $1.8 million, Launches June 15, 2011 $1.8 million Retargeting ServicesAcquisition Dish Network Bids $1.38 Billion In Cash For June 15, 2011 $1.38 billion Terrestar 5
  • 6. TYPE DEAL DATE AM OUNTAcquisition Shazam Buying Tunezee For Premium Mobile June 15, 2011 N/A Music LyricsAcquisition Google And Admeld: Pressure Is On Display June 14, 2011 $400 million Competitors-And PublishersIPO Rupert, Wendi And Google In Chinese Video June 14, 2011 $200 million Site’s $200 million IPOAcquisition Google Makes It Official, Buys Supply Side June 13, 2011 $400 million Platform AdmeldAcquisition Facebook Acq-Hires Dutch UI Designers Sofa June 10, 2011 N/AVenture Cap Contextual Provider ADmantX Stresses June 8, 2011 $2.8 million ‘Cookie-Less’ Targeting In First RoundAcquisition Variety Acquires Research Company June 7, 2011 N/A TVtrackerAcquisition Aegis In Talks To Sell Synovate Research Unit June 7, 2011 $820 million For $820 millionAcquisition RIM Buys Scoreloop To Grow In House Social June 7, 2011 N/A Gaming ExpertiseVenture Cap Google’s Schmidt Leads Funding For Display June 6, 2011 N/A Ad Provider SpongecellAcquisition Getty Images Completes Acquisition Of June 2, 2011 N/A Photolibrary; Second Deal This YearM&A WPP Takes Majority Stake In Brazil Digital June 2, 2011 N/A Shop F.BizSource: Content Next Media, Inc., Paid Content.org, http://paidcontent.org/topic/ma-venture-capital/ For More Information about Opportunities in the Sector or GT’s Capabilities: Troy Centazzo Greg Chambers 310.846.5009 310.460.8968 troy.centazzo@growthink.com greg.chambers@growthink.com 6