Alibaba, Tencent in talks to buy stake in WPP’s Chinese unit

A consortium made up of tech giants Alibaba and Tencent, alongside China Media Capital Holdings (CMC), are reportedly in talks to buy a stake in the Chinese operations of WPP.

According to Sky News, the Chinese businesses are in the early stage discussions to buy around 20% of the holding company’s business in the region, which is valued between $2bn and $2.5bn.

The deal, which could take months to conclude, would see WPP pool its Chinese agency operations into a new holding company, Sky News reports. The consortium would then acquire roughly equal shareholdings in the new company, with WPP Group retaining majority ownership and control.

According to the report, Roberto Quarta, WPP’s chairman, is understood to have travelled to China with Andrew Scott, co-CEO, to discuss the prospective deal.

However, other, unnamed sources said the complexity of the deal meant it remains uncertain.