Revenge Investment

Looking for something to invest in? Other than crypto that is. Well I have just the venture to look at, but don’t tell anyone.

S4 Capital looks to be an interesting bet.

Sir Martin Sorrell was paid £70 million last year for running the company WPP (the highest pay for any FTSE 100 company) which he ran for more than 30 years. An advertising company that was originally worth £250,000 and is now worth £16 billion. Not a bad turn-around and one that made Mr Sorrell £400 million. He is also due to £19 million in bonus shares over the next 4 years.

He resigned 4 weeks ago, with several theories and media opinions as to why. He was being pushed in that direction and he thought it time to jump ship, with WPP losing nearly a third of its value in 2017.

He left without a Non-Compete clause in his contract. (They theorised he wouldn’t set up a company to compete with WPP, as he had so much money invested in WPP). Well maybe he does not need the money and at 73, his drive to run a company is greater than his need for the money. Getting kicked out of the company you made gives motivation in the form of revenge.

He is about to start an advertising business similar to WPP but using more modern techniques. (I ask myself, ‘why didn’t he do that with WPP when it started to down-turn’)?
He just invested £40 million of his own money and is set to get at least £110 million from investors to start his new venture. He already has £11 million to allow the takeover.
He needs a major Stock Market company and so he is getting one to take over his new company. (Reverse takeover). Derriston Capital PLC will take over S4 Ltd and be renamed S4 Capital PLC.

Martin Sorrell will then appoint new directors and he will have full control of the company. They then intend to take over other companies to form the start of what I anticipate to be a global communications company in a very short time.

You can’t lose. Can you?

This is not investment advice, I actually have no shares and the last ones I had ended up costing me. This is a news story highlighting how one man can work big business and enjoy it.

This will be a film in a few years.

Don’t buy WPP shares yet. Wait for them to fall through the floor and get them just before Martin Sorrell buys the company back.