WPP, where Mr. Sorrell remained a shareholder, declined to comment.
S4 Capital plans to be publicly traded by using an existing company’s listing. According to a May filing, it aims to “build a multinational communication services business, initially by acquisitions,” with a focus on technology, data and content. Mr. Sorrell, who was one of the world’s most highly-paid executives while at WPP, contributed 40 million pounds (about $53 million) of the firm’s initial £51 million in equity funding and is its executive chairman.
The filing noted that institutional investors had indicated they would be willing to provide more than £150 million in additional equity funding for acquisitions. Last week, The Wall Street Journal reported that Mr. Sorrell was seeking shareholder approval to raise up to £1 billion for additional acquisitions. The report also noted that an information circular, published in advance of a general shareholder meeting on July 23, said talks were underway regarding multiple acquisitions.
“I think WPP expected him to be perhaps toxic and therefore not able to raise capital,” said Brian Wieser, a media analyst at Pivotal Research. “They maybe underestimated the degree to which he now has a massive chip on his shoulder and really wants to be able to prove himself.”
It remains to be seen how Mr. Sorrell’s exit from WPP affects his new business ventures. In recent weeks, Mr. Sorrell has denied a report in The Wall Street Journal that his departure was preceded by a company investigation into whether he had visited a brothel and used WPP money to pay a prostitute. Separately, he denied allegations of bullying behavior detailed in The Financial Times.
MediaMonks, when asked about the bids and whether it had discussed the allegations regarding Mr. Sorrell with its clients, said it did not comment on speculation. The digital production company, founded in 2001, has 11 offices globally and about 750 employees that it refers to as “monks.” It has worked with companies like Lego, Google, Bose and Ikea on creative projects from gaming apps to documentaries.
“I still think he will be very successful in attracting agencies,” Greg Paull, a principal at R3, a consulting firm, said of Mr. Sorrell. “He’s built so much good will in the business, there will be enough entrepreneurs wanting to work with him in a more hands-on structure.”
