In today’s Digest, we look at Havas entering talks over a potential WPP stake, Dentsu accelerating its global restructuring amid revenue declines, and a German court ordering Google to pay €572m in a price-comparison case.

Havas in talks over potential WPP stake

Havas is in discussions about a possible deal involving WPP. One source suggested that Havas is interested in buying WPP’s media agency. Another suggested that Havas may intend to build a stake and seek a board seat. Both Havas and WPP maintain their stance of not commenting on speculation.

The interest comes as WPP faces pressure to improve performance amid a challenging global advertising market, with its new CEO having issued a profit warning just a few weeks ago. WPP’s market capitalisation has fallen by more than 80% over the past 8 years, although they’ve seen a sharp rise with the news of Havas’ interest in a deal. 

Dentsu prepares for staff cuts as international business underperforms 

Similarly, Dentsu has faced steep revenue declines in Q3 across overseas markets and prepares for significant staff reductions in December. CEO Hiroshi Igarashi commented that restructuring was “an urgent issue”, noting that most of the group’s weakness stems from underperforming operations in the Americas, EMEA, and APAC, where organic growth has been negative year-to-date. 

The ¥52bn (£250m) restructuring plan will fund severance costs and other measures, with ¥28 bn (£134.7m) booked this year, most of it in the fourth quarter. Dentsu said layoffs will begin in December, though timing in Europe may vary due to severance rules. CEO Hiroshi Igarashi told analysts the group has yet to determine its year-end dividend as it braces for a challenging fourth quarter.

Court orders Google to pay €572m  in antitrust damages

A German court has ruled that Google abused its dominant position in the price comparison market and ordered the company to pay €572m (£492m) in damages to two local platforms. Google has been ordered to pay Idealo about €465m (£399.6m), while Producto should receive €107m (£91.8m). The ruling follows a 2024 European Court of Justice decision that found Google violated competition rules by favoring its own shopping service, resulting in a €2.7bn (£2.38) fine.

Idealo, which originally sought €3.3 bn (£2.91bn) in damages, said it will continue pursuing the full amount. “We welcome the court holding Google accountable. But the consequences of self-favoring go far beyond the amount awarded. We will continue to fight – because market abuse must have consequences and must not become a lucrative business model,” said Idealo co-founder and CEO Albrecht von Sonntag.

Google, meanwhile, plans to appeal, arguing that changes made in 2017 have increased competition.