It seems Sir Martin Sorrell will not be getting everything his own way at S4 Capital, following reports that a former MediaMonks chief is taking legal action over claims that he missed out on a huge pay-out from the £266m acquisition.
While WPP continues to struggle following Sorrell’s highly publicised departure, many analysts – and most advertising and marketing magazines – have been busy heaping praise on S4 Capital.
However, ex-MediaMonks Films founder Rogier Schalken is not such a big fan. He is taking the agency to court to establish whether he should be entitled to a slice of the sale proceeds, according to a report in The Times.
Schalken is demanding to know whether MediaMonks had already opened talks with suitors prior to him selling his stake in November 2017; he left the business in January 2018. It is claimed that although Schalken only had a relatively small stake, he sold it at a far lower price than S4 Capital paid.
S4 Capital out-bid rivals, including WPP, to buy the Dutch outfit from its founders, Victor Knaap and Wesley ter Haar, and private equity investor Bencis.
At the time co-founder and chief executive Knaap said: “MediaMonks comes from humble beginnings – we started in a basement and have grown to 750 Monks around the globe.
“With this merger, I’m privileged to be shaping the future of the creative industry alongside a man with an unprecedented reputation for building successful businesses. We’re not selling out, we’re buying in.”
To leave a comment please register – it takes less than a minute and is free of charge. You will also get our weekly email update The DM Report (to opt out contact firstname.lastname@example.org). If you are an existing user, please log in. If you have forgotten your log-in details please email email@example.com to get them reset!