WPP Plc WPP shares are trading higher on Wednesday.

British multinational advertising and public relations company WPP Plc is reportedly exploring opportunities to divest its 40% interest in the market research firm Kantar, a move that has caused an uptick in their shares.

The London-based business seeks to tap into its holdings to counteract its diminishing stock value. This endeavor comes in the wake of a challenging period for the company. In 2018, its stock cratered after management lowered its growth projections. Five years later, WPP’s stock reached its nadir as it struggled with client retention and issues around their digital capabilities.

The company now aims to generate cash and address its plummeting stock value, according to a Bloomberg report. WPP is reportedly teaming up with an advisor to assess various options, including the complete sale of its remaining stake in Kantar.

This stake was maintained after the 2019 transaction where 60% of Kantar was sold to Bain Capital, marking a significant shift in WPP’s strategies and paving the way for the stock’s ultimate revival.

Bain was reportedly gearing up to offload Kantar Media, a subsidiary of Kantar responsible for managing the television audience measurement system BARB, in a sale that could potentially raise approximately £1 billion.

Discussions regarding WPP’s potential divestiture of its stake in Kantar are still in their infancy, as the company remains open to keeping its ownership in the business if suitable options for the stake aren’t identified.

Price Action: WPP shares are trading higher by 1.17% to $48.39 as of Wednesday’s close.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.