WPP (LON: WPP), the FTSE 100-listed advertising and marketing firm, is looking to sell its in-flight entertainment provider Spafax as part of a broader effort to reshape the business, according to a report from Sky News on Friday afternoon.
According to the report, WPP has enlisted bankers to oversee the sale and is seeking between £50 million and £75 million for the company, which has been part of its portfolio for 25 years.
The disposal is reportedly being handled by JEGI CLARITY, a firm specialising in media industry transactions.
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Spafax provides in-flight media services to dozens of airlines, with past clients including British Airways, Emirates, JetBlue, and Latam.
The company was originally acquired by WPP in 2000, during Sir Martin Sorrell’s tenure as CEO.
While the sale is unlikely to make a significant financial impact on WPP, which has a market capitalisation of £6.8 billion, it is said to reflect the ongoing pressure on CEO Mark Read to streamline operations.
Shares in WPP have declined sharply in recent years, falling another 13% over the past 12 months. So far, on Monday, the stock is up around 0.6%.
The move also comes amid strategic changes at WPP under the leadership of new chairman Philip Jansen, the former BT Group chief, who is keen to position the company for advancements in artificial intelligence.
Potential buyers for Spafax reportedly include trade bidders and private equity firms, though no final decision has been made.
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