M&C Saatchi

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M&C Saatchi
Traded asLSESAA
Industryadvertising agency
FoundedJanuary 1995
FounderMaurice Saatchi, Charles Saatchi, Jeremy Sinclair, Bill Muirhead, David Kershaw
Revenue$251.5 million for FY2017[1]
SubsidiariesWalker Media, Clear Ideas

M&C Saatchi (LSESAA) is an international advertising agency network formed in January 1995 by Jeremy Sinclair (chairman), Bill Muirhead, David Kershaw (chief executive) and the brothers Maurice Saatchi and Charles Saatchi. This followed the resignation of Maurice Saatchi from the advertising agency group Saatchi & Saatchi which he had founded with his brother Charles in 1970.[2][3] The Group is listed on the AIM Board of the London Stock Exchange.[4]

Foundation[edit]

In December 1994 the board of Saatchi & Saatchi succumbed to sustained pressure from shareholder representative David Herro of Harris Associates L.P. and moved to remove its chairman, Maurice Saatchi. Maurice subsequently resigned.[5] Within a month, senior executives Jeremy Sinclair, Bill Muirhead, David Kershaw also resigned and decided to open their own agency.[6] They were subsequently joined by Maurice and Charles Saatchi to create new business which would become known as M&C Saatchi.[6] A number of Saatchi and Saatchi's London management and creative staff also joined and then some consequential clients soon followed[7] including Gallaher Group, Mirror Newspapers, the retailer Dixons and after a competitive pitch, British Airways and its part subsidiary Qantas as well as the Conservative Party, for whom they made the infamous New Labour, New Danger adverts.[8] In 2015, the agency was behind the Tory election campaign posters, picturing Ed Miliband in Alex Salmond's pocket.[9]

Network[edit]

A network was initially established in-line with the office locations required by British Airways and Qantas. By early 1996 the network consisted of offices in London, Singapore, Hong Kong, Sydney, New York and Auckland.[10]

In 2012 the network opened its 27th office in Stockholm, having previously opened offices in Abu Dhabi (2012), Cape Town and Johannesburg (2010), Milan (2010), Beirut (2010), Beijing (2010), Tokyo (2009), São Paulo (2008), Geneva (2008), Mumbai (2007),New Delhi (2006), Paris (2005), Bahrain (2005), Madrid (2005), Berlin (2005), Kuala Lumpur (2003), Shanghai (2000), Wellington (1999), Los Angeles (1999), Melbourne (1997).[citation needed]

By 2012 the Group also owned the UK based businesses Walker Media (a media buying agency) and Clear Ideas (a strategic brand consultancy).[citation needed] Operations in Riyadh, Dubai, Suva, Taipei, Bangkok and earlier attempts in Tokyo and Johannesburg had also started and failed during the fifteen-year period between 1995 and 2010.[citation needed]

Ownership and acquisitions[edit]

The initial principal shareholders in M&C Saatchi were Maurice and Charles Saatchi and their founding partners Muirhead, Sinclair and Kershaw – collectively known as "the Partners". They generally held 80% of each office while local management held the remaining 20%.[10] M&C Saatchi remained an independent business until 2004, when all of its worldwide shareholders agreed to float 49% of the agency on the Alternative Investment Market, a sub-market of the London Stock Exchange.[10] In October 2006, Marketing Week announced that Charles Saatchi had divested his 7% stake in M&C Saatchi PLC. Charles had had little active involvement in the running of the agency for a number of years.[11]

Limited acquired 49 per cent of their fashion business from M&C Saatchi in 2010 and M&C Saatchi Agency Pty Ltd (Australia) bought back 20 per cent of theirs.[12] The following subsidiaries were acquired throughout the year: M&C Saatchi Mobile Ltd, M&C Saatchi, One SAS, The Source Ltd, M&C Saatchi Abel (PTY) Ltd and M&C Saatchi SPA.

M&C Saatchi bought a 25% stake in the online media intelligence agency Human Digital in March 2011.[13]

In January 2013, the firm took a 60% stake in Merlin Elite, a talent management agency, that would now be renamed as M&C Saatchi Merlin.[14]

In April 2017, the firm acquired a 51% stake in M&C Saatchi Sponsorship, based in Madrid.[15]

In June 2018, M&C Saatchi partnered with gambling charity, GambleAware, to create a safer gambling campaign.[16]

In July 2018, M&C Saatchi acquired Red Hare Digital & Grey Whippet to form M&C Saatchi Social and that led to the creation of The M&C Saatchi Talent Group.[17]

References[edit]

  1. ^ "M&C Saatchi 2017 Annual Report" (pdf). www.mcsaatchiplc.com. Retrieved 6 December 2018.
  2. ^ Fendley, Alison (1996). Saatchi & Saatchi: The Inside Story. Arcade Publishing. ISBN 1-55970-363-6.
  3. ^ "M&C Saatchi partners: If you start them up, they'll never stop". The Independent. Retrieved 2018-06-20.
  4. ^ "M&C SAATCHI share price (SAA) - London Stock Exchange". www.londonstockexchange.com. Retrieved 2018-06-20.
  5. ^ Goldman, Kevin (1998). Conflicting Accounts: The Creation and Crash of the Saatchi & Saatchi Advertising Empire. Simon & Schuster. ISBN 0-684-81571-0.
  6. ^ a b Clark, Mairi. "The Drum speaks to Jeremy Sinclair of M&C Saatchi to talk about the brutal simplicity of thought". The Drum. Retrieved 15 March 2017.
  7. ^ Findarticles.com, Saatchi Sacking Milwaukee Sentinel, 16 January 1995
  8. ^ Carlin, Brendan; Colvile, Robert (5 September 2006). "Saatchis aren't working for the Tories". The Daily Telegraph. London.
  9. ^ Palmer, Katie. "M&C Saatchi boosted by election as ad giant delivers record £13m profits". The Telegraph. Retrieved 17 March 2017.
  10. ^ a b c M&C Saatchi Float Prospectus 2004
  11. ^ "Charles Saatchi sells stake in M&C - Marketing Week". www.marketingweek.co.uk. Retrieved 3 July 2018.
  12. ^ "TALK.GLOBAL - Consumer, Luxury & Lifestyle Communications Agency - Leading London communications agency specialising in retail, fashion, beauty, grooming, wellbeing, food, drink, property and cars". TALK.GLOBAL - Consumer, Luxury & Lifestyle Communications Agency. Retrieved 3 July 2018.
  13. ^ "Archived copy". Archived from the original on 2011-07-17. Retrieved 2011-07-19.CS1 maint: archived copy as title (link)
  14. ^ Mark Sweney (24 January 2013). "M&C Saatchi takes 60% stake in talent firm". London: The Guardian.
  15. ^ "M&C Saatchi M&C Saatchi lanza en España una nueva agencia de patrocinios". Dirconfidencial.
  16. ^ "M&C Saatchi to Partner with GambleAware".
  17. ^ "M&C Saatchi acquires two influencer agencies and unveils new talent business". The Drum. Retrieved 2019-04-26.

External links[edit]