NEW YORK - Interpublic Group (NYSE:IPG), a global provider of marketing solutions, has sold its digital company, Huge, to AEA Investors, the company announced today. AEA Investors, a global private investment firm, will merge Huge with Hero Digital, a company within its portfolio. The financial terms of the transaction have not been disclosed. According to InvestingPro data, IPG maintains a "GOOD" Financial Health score and appears undervalued based on its Fair Value analysis.
Philippe Krakowsky, CEO of Interpublic, expressed confidence in Huge's future, stating, "We're pleased for the team at Huge and look forward to seeing the next phase for this storied digital brand as the company continues its evolution under new ownership."
Interpublic Group, an S&P 500 company, reported total revenue of $10.89 billion in 2023. Its portfolio includes well-known and innovative communications specialists such as Acxiom, Craft, FCB, FutureBrand, Golin, and others.
The acquisition indicates a strategic move for AEA Investors to strengthen its position in the digital services space by combining Huge's capabilities with those of Hero Digital.
This announcement is based on a press release statement from Interpublic Group. No further details about the future plans for Huge under the new ownership have been made public.
In other recent news, Interpublic Group has reported significant financial outcomes, including a steady margin despite a challenging quarter. The company's total revenue before billable expenses was $2.24 billion, a slight decrease from the previous year. Interpublic has recently acquired Intelligence Node, an eCommerce intelligence platform, aiming to bolster its commerce capabilities. This acquisition is expected to enhance Interpublic's ability to develop agile strategies for product development, marketing, and retail media.
Wells Fargo (NYSE:WFC) has revised Interpublic Group's stock rating from Equal Weight to Underweight, adjusting the company's price target to $26.00, down from the previous $28.00. The downgrade is based on the anticipation of the company's fourth-quarter results and the potential impact of losing Amazon (NASDAQ:AMZN) as a client.
Interpublic has also declared a quarterly dividend of $0.33 per share, underscoring its commitment to delivering value to its shareholders. Other recent developments include the launch of Interact, a new marketing intelligence engine, the appointment of a new Chief Strategy Officer, and the return of $100 million to shareholders through the repurchase of 3.2 million shares. Notably, these are recent developments and should be considered as such by investors.
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