WPP Says Expect More Consolidation in the Media Market

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Expect more deals in the media space following this week’s sale of the Financial Times, according to Martin Sorrell, CEO of the advertising firm WPP. Pearson sold the FT to Nikkei for $1.3 billion. ‘There’s some stresses and strains, particularly in the area of legacy media,’ said Sorrell, who pointed to tepid growth and a lack of pricing power. ‘Clearly some of the traditional legacy media owners are feeling the pressure.’ In the case of Pearson, Sorrell said the company couldn’t sufficiently invest in the FT. Days after the FT deal, there were reports that Comcast (CMCSA) is looking at making investments in several new media companies, which doesn’t surprise Sorrell. ‘We’re seeing the development of digital media. It’s 40%, or close to it, of our business, whereas fifteen years ago it was virtually nothing.’ Comcast reportedly was considering an investment in Vice, of which WPP owns about 10%. WPP also has invested in the website Refinery29, and Media Rights Capital, which produces Netflix’s (NFLX) 'House of Cards'. • Subscribe to TheStreetTV on YouTube: http://t.st/TheStreetTV • For more content from TheStreet visit: http://thestreet.com • Check out all our videos: / thestreettv • Follow TheStreet on Twitter: / thestreet • Like TheStreet on Facebook: / thestreet • Follow TheStreet on LinkedIn: / thestreet • Follow TheStreet on Google+: http://plus.google.com/+TheStreet

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