Stagwell Group, a self-reported holding company founded by former Microsoft executive Mark Penn in 2015 would have accepted a $ 100 million investment in MDC Partners. Penn will assume the position of CEO of the troubled holding company after the transaction and will assume a role on its board of directors.
MDC Partners reportedly informed the management team of the transaction at 5 pm aujourd & # 39; hui. The media began to announce the news tonight, citing an internal memo describing the agreement and an interview with Penn.
The representatives of both companies did not immediately respond to requests for comment. The next call for MDC results will take place on Friday morning.
The news concludes a search for executives to replace CEO Scott Kauffman, led by research firm Grace Blue, who also did not respond to an e-mail soliciting comments.
MDC Partners named a new leadership early in the year. Kauffman will leave the company after the announcement of his imminent departure. Several MDC partner agencies reportedly attempted to redeem themselves at the holding company last year, but their offers were either rejected by MDC's board of directors or had abandoned the process. On Wednesday, the agency MDC Partners, Instrument, announced that it had acquired This This Brooklyn agency, expanding its operations in New York.
The network includes several leading advertising agencies and public relations agencies, including Anomaly, 72andSunny, Crispin Porter + Bogusky and Allison + Partners.
Penn has a long career in public relations, business and politics, having been an advisor to Bill and Hillary Clinton. The Stagwell Group is financially supported by Steve Ballmer, former CEO of Microsoft and owner of the Los Angeles Clippers.
This story develops.