UK advertising group M&C Saatchi has today rejected an unsolicited £50m bid for its media division from rival Brave Bison, saying the offer "fundamentally undervalues" the business.
M&C Performance, M&C Saatchi's digital media planning and buying division, is a key growth driver for the group as advertisers pivot to digital media, serving clients like Amazon and Meta.
The ad group said the unit, which grew 5.4% in the first half of the year, forms a core element of its growth plans and that no deal discussions were ongoing.
Panmure Liberum analyst Johnathan Barrett noted that while the implied valuation for the unit appears low, it nonetheless highlights the appeal of M&C Saatchi's portfolio.
Brave Bison had intended to combine the division with its existing performance marketing operations to create one of the largest independent performance marketing companies outside the US, with market-leading presence in the UK and Asia-Pacific.
Backed by Rupert Murdoch and former Conservative Party treasurer Lord Ashcroft, Brave Bison has been on an acquisition spree, snapping up five businesses this year alone.
Its shares have nearly doubled in value this year, and it lifted its 2025–26 forecast in September, driven by its MTM London acquisition and new clients such as Primark, Tottenham Hotspur FC, EA Games, and Guinness World Records.
M&C Saatchi, however, issued a sales warning in September amid tough trading conditions for ad groups in the UK as clients cut back on spending pressured by an uncertain economy.
M&C, whose shares have lost a fifth of their value so far this year, is valued at £166.3m, according to LSEG data.
