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Michaela Pewarski

FEATURING

NEW YORK, Oct. 20, 2021 /PRNewswire/ — Stagwell (NASDAQ: STGW) announced today the Company will report financial results for the three months ended September 30, 2021 on Wednesday, November 3, 2021, before the market open.

Stagwell will host a video webcast to review those results the same day at 8:30 AM (ET). The webcast will be accessible via this link.

A replay of the webcast will be available following the event at Stagwell’s website, www.stagwellglobal.com 

About Stagwell Inc.
Stagwell is the challenger holding company built to transform marketing. We deliver scaled creative performance for the world’s most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing.  Led by entrepreneurs, our 10,000+ specialists in 24+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients

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Michaela Pewarski

FEATURING

Former United States Treasury Secretary Lawrence H. Summers to join special in-person discussion hosted at 1 World Trade Center

NEW YORK, Sept. 2, 2021 /PRNewswire/ — Stagwell (NASDAQ: STGW) announced today it has rescheduled its fall investor introduction event from September 20, 2021 to November 8, 2021. Credentialed press are invited to register. Visit this link to reserve a spot.

In addition to presentations from Stagwell’s management team, the event will feature a special in-person discussion with former United States Treasury Secretary Lawrence H. Summers. Summers previously served as Chief Economist of the World Bank, and under President Barack Obama was Director of the National Economic Council. Summers is currently Charles W. Eliot University Professor and President Emeritus at Harvard University.

The event will be hosted at Stagwell’s global campus at 1 World Trade Center in Manhattan, N.Y., and streamed live via video webcast. Vaccinations will be required for in-person attendees. A recording of the presentation will be available after the event on Stagwell’s website, www.stagwellglobal.com.

Last month, Stagwell Marketing Group LLC and MDC Partners combined to form Stagwell, a top-10 global marketing services company built to transform marketing.

About Stagwell Inc.
Stagwell is the challenger holding company built to transform marketing. We deliver scaled creative performance for the world’s most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing.  Led by entrepreneurs, our 10,000+ specialists in 24+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients

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Michaela Pewarski

FEATURING

NEW YORK, Sept. 23, 2021 /PRNewswire/ — Stagwell Inc. (Nasdaq: STGW) today announced the Company elected to convert all outstanding shares of its Series 6 Convertible Preferred Stock, par value $0.001 per share (the “Series 6 Preferred Stock”) and its Series 8 Convertible Preferred Stock, par value $0.001 per share (the “Series 8 Preferred Stock”). A Notice of Conversion was provided to each holder of record of the Company’s Series 6 and Series 8 Preferred Stock on September 23, 2021. The conversion will take place and be effective on October 7, 2021 (the “Conversion Date”).

Pursuant to the Series 6 Notice, all 50,000 outstanding shares of Series 6 Preferred Stock will be converted into 12,086,700 shares of the Company’s Class A Common Stock, par value $0.001 per share (the “Class A Common Stock”), on the Conversion Date. Pursuant to the Series 8 Notice, all 73,849 outstanding shares of Series 8 Preferred Stock will be converted into 20,948,746 shares of the Company’s Class A Common Stock.

“We feel confident the conversion of preferred shares is in the best interests of all Stagwell common shareholders as it eliminates any potential accretion,” said Mark Penn, Chairman and CEO, Stagwell Inc. “This action helps to complete the process we embarked upon to streamline and simplify Stagwell’s capital structure, making this a more investable company for the long term.”

This action helps to complete the process we embarked upon to streamline and simplify Stagwell’s capital structure, making this a more investable company for the long term.

Mark Penn

CEO, Stagwell

The shares of Class A Common Stock are being issued in reliance upon the exemption set forth in Section 3(a)(9) of the Securities Act of 1933, as amended, for securities exchanged by the Company and existing security holders where no commission or other remuneration is paid or given directly or indirectly by the Company for soliciting such exchange.

About Stagwell Inc.
Stagwell is the challenger holding company built to transform marketing. We deliver scaled creative performance for the world’s most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing.  Led by entrepreneurs, our 10,000+ specialists in 24+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, which include statements regarding the Company’s intentions or current expectations concerning, among other things, the completion, timing and potential benefits of the conversion of the Series 6 Preferred Stock and the Series 8 Preferred Stock. Forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those expected or implied by the forward-looking statements.

(Source: Stagwell Inc.)

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Annual awards ceremony hosted by the 4A’s, the industry’s leading trade association, recognizes excellence in marketing strategy

NEW YORK, Sept. 22, 2021 /PRNewswire/ — (NASDAQ:STGW): Stagwell today announced three of its agencies, Anomaly, Colle McVoy, and 10 Thousand Design, received recognition at the 2021 Jay Chiat Awards, an annual celebration of the best strategic thinking in marketing, media and advertising around the world. The awarded campaigns include work for MELĒ Skincare, Obie, and Houston White, and illustrate the transformative value for clients and consumers when marketing strategy blends purposeful creative with keen consumer insights.

“Our network knows that a smart strategic insight can be the differentiator between bottom-of-the-barrel creative work and the kind of transformative marketing that moves culture — and the consumer,” said Mark Penn, Chairman and CEO, Stagwell. “I am proud that every one of this year’s winners takes that spirit of innovation and brings it to bear against real-world issues.”

Anomaly received three awards at this year’s ceremony, including:

Gold Award for National Strategy and a Bronze Award for Product/Service Creation Strategy for its campaign “A Scientific Breakthrough: The Science of Melanin-rich Skin,” created in partnership with MELĒ Skincare, a Unilever brand. Recognizing that while skincare marketing has evolved to include diverse figures, the products themselves have not, the team partnered with Unilever to create MELE, a new skincare brand designed to fill the void of products designed for darker shades of skin. Within 6 months of launch, 5 of 7 MELĒ Skincare products received competitive awards from major publications, and all available products received above 4.6 stars and over 1000 positive customer reviews.

Silver Award for Healthcare Strategy awarded for Anomaly’s partnership with BabyMed founder Dr. Amos Grunebaum to conceive and create Obie, a first-of-its kind fertility and pregnancy app that helps couples identify barriers to pregnancy and manage their fertility journeys. Anomaly led product positioning, development of the business model, and brand strategy, design, and identity. Anomaly collaborated with YML, another agency in the Stagwell network, to build the digital product.

Additionally, Minneapolis-based creative agency Colle McVoy and design firm 10 Thousand Design shared an honorable mention in the Product/Service Creation Strategy category for their work with Houston White, which unifies the entrepreneur’s community hub, retail space, and apparel and accessories businesses under one brand, “Houston White Men’s Room.” The agencies’ expertise and insights helped bolster the brand and design work, delivering a final identity that positions HWMR for national growth.

The Jay Chiat awards are hosted annually by the 4A’s, the advertising industry’s foremost trade association. Anomaly and Colle McVoy have both won the award in previous years.

Last month, MDC Partners Inc. and Stagwell Marketing Group LLC combined to form Stagwell, the challenger holding company built to transform marketing.

About Stagwell Inc.
Stagwell is the challenger holding company built to transform marketing. We deliver scaled creative performance for the world’s most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing.  Led by entrepreneurs, our 10,000+ specialists in 24+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients

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Beth Sidhu

FEATURING

NEW YORK, Aug. 30, 2021 /PRNewswire/ — (NASDAQ:STGW): Stagwell announced it will visit the Nasdaq MarketSite in Times Square on Wednesday, September 1, 2021, as it continues to celebrate the completion of the company’s launch in August. 

In honor of the occasion, Mark Penn, Chairman and CEO of Stagwell, will ring the Closing Bell. A live stream of the ceremony will be available on NASDAQ’s site at https://www.nasdaq.com/marketsite/bell-ringing-ceremony. 

Earlier this month, Stagwell Marketing Group LLC and MDC Partners Inc. combined to form Stagwell, a top-10 global marketing services company built to transform marketing.

About Stagwell Inc.
Stagwell is the challenger holding company built to transform marketing. We deliver scaled creative performance for the world’s most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing.  Led by entrepreneurs, our 10,000+ specialists in 24+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients

For more information, visit www.stagwellglobal.com

Contact:

Beth Sidhu
beth.sidhu@stagwellglobal.com
(202) 423-4414

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Beth Sidhu

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BCW Global veteran to foster a culture of collaboration and lead people operations, with focus on diversity and inclusion

NEW YORK, Aug. 3, 2021 /PRNewswire/ — (NASDAQ: STGW)  Stagwell Inc (“Stagwell” or “The Company”) today announced the appointment of Stephanie Howley as Chief People Officer, reporting to Chairman and Chief Executive Officer Mark Penn. Howley – a 20-year veteran of human resources and people operations – will focus on creating programs and infrastructure to provide Stagwell’s global network of talent with unparalleled career exploration and development opportunities.

The appointment comes on the heels of the combination of the former Stagwell Group with MDC Partners, which formed Stagwell Inc., a top ten global marketing company.

“Stagwell’s equation for success is built on a simple understanding: world class talent paired with cutting-edge technology drives better results for the modern marketer,” said Stagwell Chairman and CEO Mark Penn. “You can’t cut your way to greatness; by doubling down on our investment in our talent and the culture across the organization, we’re building a greater runway to client success and growth for the new company. Stephanie’s deep expertise will be crucial as we embark on this new journey.”

“Stagwell is fortunate to have an exciting blend of award-winning creatives and best-in-class technologists who, together, can transform marketing for our clients,” added Howley. “I look forward to supporting our agency partners and, in particular, our diversity and inclusion efforts as we drive performance through collaboration in an environment where each individual agency culture can thrive.”

Howley boasts over 20 years of experience leading people operations and strategy as Executive Vice President, Managing Director, People Team, North America for WPP’s BCW Global, which was named Global Agency of the Year by Provoke Media at the 2020 Sabre Awards. In that capacity, she led the successful integration of people operations in North America during the merger of Burson-Marsteller and Cohn & Wolfe. Prior to that, she served as EVP, Human Resources for Cohn & Wolfe Group, a tenure during which the agency was consistently listed as a “Best Place to Work” by The Holmes Report, PRWeek, Crain’s NY, Ad Age, and PRNews. Howley was the first human resources professional to win PR Week’s 40 under 40 in 2012.. She also previously served on the Board of the LAGRANT Foundation, whose mission is to increase diversity in the advertising, marketing and public relations industries. Her experience will support Stagwell’s network of agencies as they bring together both the art and science of marketing to drive results for clients.

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Lorem Ipsum

Chairman & CEO

Howley rounds out an expanded Human Resources and Talent Development team based out of Stagwell’s global campus in New York, including Director, Human Resources Stephanie Kwok, and Human Resources Generalist Alexa Munoz.

For more information on Stagwell, please visit www.stagwellglobal.com

About Stagwell. Stagwell is the challenger holding company built to transform marketing. We deliver scaled creative performance for the world’s most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing. Led by entrepreneurs, our 10,000+ specialists in 30+ countries are unified under a single purpose: to drive effectiveness and improve business results for our clients. Join us at www.stagwellglobal.com.

Contact:

Beth Sidhu
beth@stagwellglobal.com
(202) 423-4414

SOURCE: Stagwell Inc.

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Beth Sidhu

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Stagwell Inc. brings together the digital-first capabilities of Stagwell Marketing Group with the creative talent of MDC Partners, creating a top 10 global marketing services company

Combined Company will trade on the Nasdaq under the ticker STGW beginning on August 3

NEW YORK, Aug. 2, 2021 /PRNewswire/ — Stagwell Inc. (“Stagwell”) announced today that Stagwell Marketing Group Holdings LLC (“Stagwell Marketing Group”) and MDC Partners Inc. (“MDC”) have officially completed a business combination (the “Combination”) following a successful shareholder vote on July 26, 2021, creating a top 10 global marketing services company. The combined company is called Stagwell Inc. and will trade on the Nasdaq under the ticker symbol “STGW” beginning Tuesday, August 3, 2021. Under the continued leadership of CEO Mark Penn, Stagwell’s roster of world-class clients will benefit from award-winning creative talent and the latest connected technologies to drive the most effective marketing outcomes.

“I am excited about the unique opportunity we have to build a new kind of holding company that can transform the industry and create enhanced opportunities for growth and value in the marketplace,” said Mark Penn, CEO, Stagwell. “Stagwell is born from the understanding that modern culture demands the highest levels of agility and creativity to drive unique, connected experiences. Given the depth of our combined talent, we are uniquely positioned to build new marketing solutions help our clients achieve their business results. Madison Avenue, get ready for Stagwell.”

Stagwell targets growth to $3 billion in revenue by 2025, including acquisitions, organic growth, and new products. Stagwell expects its next-level growth to be driven by four key drivers:

Leading-edge digital transformation: Stagwell boasts a digital engine that understands the fastest growing segments of the marketing and advertising industry, such as e-commerce, platform building, online advocacy, influencer marketing, and global performance marketing. 

Scaled creative performance: The combined company will break down the artificial divide between brand marketing and performance media to help clients deliver effective advertising at scale, powered by higher levels of creativity. 

Innovative SaaS digital marketing products: Stagwell will continue its investment in building SaaS marketing products that solve for key gaps in the marketing ecosystem based on industry know-how and engineering heft.

Integrated solutions at global scale: While the top four marketing holding companies have historically had a stranglehold on these opportunities, the combined company can easily create global teams with the potential to win contracts at the highest levels.

These growth drivers will be supported by Stagwell’s culture of collaboration, which leverages the best in connected technology to bring together agencies across disciplines. The combined company’s nearly 10,000 employees and affiliates bring a wealth of experience across creativity, digital transformation, data analysis and audience targeting to help identify, design and execute the right solutions for modern marketers. 

Stagwell now includes renowned brands including creative agencies such as 72andSunny, Anomaly, Doner and Forsman & Bodenfors, cutting edge digital transformation firms including Code and Theory, YML and Instrument, media powerhouses Assembly, ForwardPMX and GALE, public relations leaders Allison+Partners, SKDK and Hunter, and market research firms the Harris Poll and NRG. The combined company is expected to generate between $2.135 billion and $2.180 billion in total revenue and between $372 million and $387 million in Adjusted EBITDA in 2021 on a pro forma basis including $30 million of projected synergies. Stagwell’s clients include best-in-class marketers such as P&G, Nike, and Google.

“As we move forward as Stagwell, I could not be prouder of the incredible work our agencies have already achieved together on behalf of clients like Nike, Google and P&G,” said Penn. “As we enter this new phase of our partnership, I have no doubt we have the right talent, creativity and connected services to continue our combined legacy of industry-leading client work and truly transform the future of marketing.”

Designed and created by Doner, Stagwell’s new visual identity colorfully symbolizes the combination of MDC and the Stagwell Marketing Group, and the combination of creativity and connected experiences. Code and Theory designed Stagwell’s new website: www.stagwellglobal.com 

About Stagwell Inc.
Stagwell (NASDAQ: STGW) is the challenger holding company built to transform marketing. We deliver scaled creative performance for the world’s most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing.  Led by entrepreneurs, our 10,000+ specialists in 30+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients. Join us at www.stagwellglobal.com.

Cautionary Statement Regarding Forward-Looking Statements

This communication may contain certain forward-looking statements (collectively, “forward-looking statements”) within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended and Section 21E of the U.S. Exchange Act and the United States Private Securities Litigation Reform Act of 1995, as amended.  Statements in this document that are not historical facts, including statements about Stagwell’s beliefs and expectations and recent business and economic trends, constitute forward-looking statements. Words such as “estimate,” “project,” “target,” “predict,” “believe,” “expect,” “anticipate,” “potential,” “create,” “intend,” “could,” “should,” “would,” “may,” “foresee,” “plan,” “will,” “guidance,” “look,” “outlook,” “future,” “assume,” “forecast,” “focus,” “continue,” or the negative of such terms or other variations thereof and terms of similar substance used in connection with any discussion of current plans, estimates and projections are subject to change based on a number of factors, including those outlined in this section. Such forward-looking statements may include, but are not limited to, statements related to: future financial performance and the future prospects of the business and operations of Stagwell; information concerning the Combination; and the anticipated benefits of the Combination. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement, including the risks identified in our filings with the Securities Exchange Commission (the “SEC”).

These forward-looking statements are subject to various risks and uncertainties, many of which are outside Stagwell’s control. Important factors that could cause actual results and expectations to differ materially from those indicated by such forward-looking statements include, without limitation, the risks and uncertainties set forth under the caption “Risk Factors” in Stagwell’s Annual Report on Form 10-K for the year-ended December 31, 2020 under Item 1A and under the caption “Risk Factors” in Stagwell’s Quarterly Report on Form 10-Q for the quarter-ended March 31, 2021 under Item 1A.

You can obtain copies of Stagwell’s filings under its profile on SEDAR at www.sedar.com, its profile on the SEC’s website at www.sec.gov or its website at www.stagwellglobal.com. Stagwell does not undertake any obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as expressly required by law. All forward-looking statements in this communication are qualified in their entirety by this cautionary statement.

CONTACT:  
Beth Sidhu 
Stagwell Inc.
202.423.4414 
Beth.sidhu@stagwellglobal.com

SOURCE Stagwell Inc.; MDC Partners Inc.

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FEATURING

NEW YORK, July 28, 2021 /PRNewswire/ — (NASDAQ: MDCA) – MDC Partners Inc. (“MDC Partners” or the “Company”) and Stagwell Marketing Group LLC (“Stagwell”) announced today that both companies will report separate financial results for the three months ending June 30, 2021 on Wednesday, August 4, 2021, before market open.

MDC Partners and Stagwell will host a joint video webcast and conference call to review those separate financial results the same day at 8:30 AM (ET). The video webcast will be accessible at https://kvgo.com/openexchange-inc/mdca-stagwell-earnings-call.

About MDC Partners Inc.

MDC Partners is one of the most influential marketing and communications networks in the world. As “The Place Where Great Talent Lives,” MDC Partners is celebrated for its innovative advertising, public relations, branding, digital, social and event marketing agency partners, which are responsible for some of the most memorable and effective campaigns for the world’s most respected brands. By leveraging technology, data analytics, insights and strategic consulting solutions, MDC Partners drives creative excellence, business growth and measurable return on marketing investment for over 1,700 clients worldwide. For more information about MDC Partners and its partner firms, visit our website at mdc-partners.com, sign up for investor-related updates and alerts, and follow us on LinkedIn.

About Stagwell Marketing Group

The Stagwell Marketing Group is the first and only independent, digital-first, and fully-integrated organization of size & scale servicing brands across the continuum of marketing services. Collaborative by design, Stagwell is not weighed down by legacy points of view and its people are united in their desire to innovate, evolve, grow and deliver superior results for their clients. Stagwell’s high growth brands include experts in four categories: digital transformation and marketing, research and insights, marketing communications, and content and media. Stagwell is a private equity fund that owns all interests in Stagwell Marketing Group LLC through a wholly owned holding company named Stagwell Marketing Group Holdings LLC. Stagwell Marketing Group LLC and its businesses are managed by The Stagwell Group, a registered investment advisor. The address of Stagwell is 1808 Eye Street, Floor 6, Washington, D.C., 20006.

SOURCE: MDC Partners Inc.

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Beth Sidhu

FEATURING

The long-proposed merger of MDC Partners with the Stagwell Group cleared its final hurdle to completion on July 26 when MDC shareholders approved a sweetened offer. The merger creates a new company called Stagwell Inc. and is expected to close on August 2.

The main priority of the new Stagwell, which encompasses media agency Assembly, digital shop Code and Theory, creative agency 72andSunny and agency and PR firms, is to generate organic growth — $3 billion over an unspecified amount of time, according to Mark Penn, chairman/CEO of MDC Partners, and president/managing partner of Stagwell Group.

“We expect our growth to be principally organic because 40 percent of our services will be high-growth digital,” said Penn in an interview with Digiday. “That supplants the old model, of 90 percent traditional advertising at MDC. By fundamentally changing the mix, we’re going to change the growth pattern and go after much stronger organic growth and reach up for bigger client relationships.”

How will that astronomical number be reached? Penn said it’s done mainly by growing existing clients, citing Disney, Procter & Gamble and Google as among the biggest companies they serve. “We continue to have great strengths for tech clients,” he added. “But we do super well with new economy clients. What we’re trying to do here is to cement larger relationships.”

In a missive sent out Monday morning, Penn spelled out a four-pronged approach to landing new clients as well: digital transformation, including e-commerce, platform building, online advocacy, influencer marketing, and performance marketing; breaking down what he dubbed “the artificial divide” between brand marketing and performance media; building SaaS products “that solve for key gaps in the marketing ecosystem;” based on our industry know-how and engineering heft;” and global integrated solutions to compete with other holding companies.

By fundamentally changing the mix, we’re going to change the growth pattern and go after much stronger organic growth and reach up for bigger client relationships.

Mark Penn

Chairman & CEO

The two mini-holding companies have already had some success with landing big accounts. In 2019 MDC shop Doner was able to secure some of Johnson & Johnson’s creative business, and just this past April landed J&J Baby business with Stagwell sibling Code and Theory.

But there remain issues to overcome, one reason the MDC name is being retired upon completion of the merger. For one, as Penn admitted, the MDC model for years has been based on traditional methods of servicing clients. “The MDC agencies themselves have great reputations, but the central core didn’t,” he said.

For now, no major merging of individual assets will be forced together, said Penn. “There’s $30 million of synergies [to be realized], but we’ve synergized by reducing back-office expenses, not through [the] smashing of assets,” he explained. “You’re not going to see that kind of dislocation — that’s not in the plans.”

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Beth Sidhu

FEATURING

The combined company will have global revenues of $2.1 billion and be renamed Stagwell Inc.

MDC Partners and Stagwell Group have finally completed their proposed merger, announced in December, after a lengthy back-and-forth with MDC shareholders.

The deal, completed on Monday during a special shareholder meeting, will rename the combined entity Stagwell Inc., which will trade on the NASDAQ under the ticker STGW. The transaction is expected to be completed by August 2.  

MDC shareholders will own 31% of the combined entity, up from an initial proposal of 18.5% and a revised proposal of 26%. Stagwell’s owners, including CEO Mark Penn, will hold 69% of the company.

MDC’s stock hit $6 per share following the announcement, up from $2.38 in January.  

Despite drama surrounding the merger, including calls from MDC’s largest shareholder, Indaba Capital, to vote against the deal unless terms were revised, the tie-up is “a win-win transaction” for both sides, said Penn. “This is a great deal, with a new future and fresh start.”

Although MDC’s shareholders supported the logic of the merger, there was a “vigorous debate” about what a fair split was when it came to company ownership, he said. 

“We made concessions, we made changes, we were responsive to shareholders and we were able to get 71% of the minority investors [on board],” Penn added. “MDC shareholders [realized] they will be better off with 31% of the combined company than 100% of the standalone. That got it across the finish line.”  

Stagwell, which will generate $2.1 billion in annual global revenue, will combine the creative capabilities at MDC Partners with the digital transformation, research and data expertise at Stagwell. MDC owns creative agencies including 72andsunny, Crispin Porter + Bogusky and Anomaly; Stagwell owns firms including The Harris Poll, Code + Theory and Forward PMX.

MDC’s PR and public affairs firms include SKDKnickerbocker, and MDC’s include Hunter, Allison+Partners and KWT Global. Finn Partners bought back Stagwell’s minority stake in its firm this year. 

“Putting together these incredible creative companies that haven’t been managed well at the center with our digital-first group would give us the scale to compete with the major [holding companies],” Penn said. 

The decision to retire the MDC brand signifies a new era for a holding company with a checkered past. While MDC’s agencies have solid reputations, the holding company has financially underperformed and has been mired in scandal, including a 2015 accounting scandal involving then-CEO Miles Nadal, which resulted in an SEC investigation. 

Not much will change day-to-day for clients and talent, since Penn has already been managing both companies since Stagwell invested $100 million in MDC Partners in 2019. But the group will double down on end-to-end digital and creative capabilities and aim to compete in larger global pitches.  

To pull it off, Stagwell will keep its agency brands separate while incentivizing collaboration. Doner and Code + Theory, for example, are already working together on the Johnson & Johnson account. 

“When you smush [agencies] together you confuse the cultures,” Penn said. “This way, we’ll get the highest level of both creative and digital transformation expertise.”

The combination will also significantly enhance MDC’s media capabilities, which has been a “weak link,” Penn said. The combination of Forward PMX, Assembly and Gale will result in a media network managing about $5 billion in investments.

Stagwell also plans to operationalize research from The Harris Poll and National Research Group into a data platform called Q that will be used across agencies to inform media buying and creative. Stagwell serves 6 to 8 million people across 14 countries with surveys, creating a considerable pool of consented first-party data. 

Talent will feel the effects of the merger when they return to the office, as both MDC and Stagwell have consolidated their headquarters at One World Trade Center in New York City. The office is open, but Stagwell is keeping an eye on the Delta variant before making any strict rules about going back to the office. 

“I’m pretty excited about the opportunities [the campus] provides for collaboration. It’s not just a place to work, but a symbol of the philosophy,” Penn said. “But let’s see where we are at by Labor Day.”

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