Advertising Age: Mark Penn Wants to Build a New Kind of Holding Company

ad_age

Mark Penn in September will leave Microsoft, where he has served as exec VP and strategy officer, to start a company that will invest in advertising, research, data analytics, public relations and digital marketing companies.

Ex-Microsoft CEO, Steve Ballmer, is an investor in the company, called Stagwell Group, which will be based in offices at 1700 K Street, in Washington D.C. The company has already closed $250 million in investment capital, but it’s not currently accepting new investors, according to a statement. Currently he and Mr. Ballmer are the only investors and will build their team over the next few months, said Mr. Penn.

Prior to joining Microsoft, Mr. Penn served as CEO of WPP PR firm Burson-Marsteller and before that he was co-founder and CEO of Penn Schoen Berland, a market research and polling firm that eventually became part of WPP and Burson-Marsteller. He has been a senior adviser to political leaders including U.K. Prime Minister Tony Blair, Israeli Prime Minister Menachem Begin, Senator Hillary Rodham Clinton and President Bill Clinton.

He talked to Ad Age about what he wants his company to look like, why the small holding company trend makes sense today and how he expects to compete with the big holding companies for marketing dollars and agency acquisitions.

Ad Age: What types of companies will you invest in?

Mark Penn: We’ll put together a mix of companies. One of the problems in big holding companies is that there are 10 people competing against each other. One of the things we can do there is take a best in class in key disciplines so they can support each other. I think we’ll have to have a mix of creative companies, companies that have research and data analytics at their core and companies with experience in new digital placement, whether it’s new forms of programmatic buying or [firms] that are really able to sweep the most effectiveness out of your digital buy.

Ad Age: What will you do differently from existing agency networks?

Mark Penn: I hope to also bring together this experience to create a new kind of fund and one that also is managed by people with deep experience in their fields. Too often people who are doing these investments and managing and growing a firm have experience in accountancy and not deep into the fields themselves. I want to be more helpful in nurturing and growing great mid-sized companies into being really big companies.

Read the full article at Advertising Age

The Wall Street Journal: Microsoft’s Mark Penn Forms New Digital Marketing Investment Group


Mark Penn, a Microsoft senior executive who formerly worked at WPP, is leaving the technology firm to found a new company that will invest in digital marketing services.

Mr. Penn’s new fund, Stagwell Group LLC, has raised $250 million in funding, including from former Microsoft Chief Executive Steve Ballmer, who is a core investor in the new company.

Stagwell Group also has the capacity to use leverage to make up to $750 million in acquisitions, the company announced Wednesday. Stagwell Group will focus on investing in companies that are “digital-first” and can use technology and data to inform creative work, Mr. Penn said. In addition to digital marketing services, the fund said it may invest in advertising, research, data analytics and public relations.

“There’s a lot of room for new blood in the advertising and marketing industry,” said Mr. Penn, who will leave his current role as executive vice president at Microsoft by September. “Every client is looking for how to combine good advertising creative with good data analytics. I don’t think they’re getting those answers from the companies they’ve got, even if they’ve got some of the biggest companies in the world.”

Read the full article at The Wall Street Journal

--->