Ownership structure of WPP group

The ownership structure of WPP is quite scattered. As of May 2002, its major shareholders and shareholding ratio are 4. 17% of WPP employee stock ownership plan, 4. 10% of Putnam Investment Management Company, 3.77% of Legg Mei Sen Company, 3. 14% of Morgan Stanley Company and 3.00% of Barclays Bank, and its annual income. After the annexation of Yang Ya (Yang &; Rubicam, ranked 14 in the world, earned $442 million in 2002) and Tempus Advertising Group, which acquired Cordiant at a very low price in 2003. WPP has more than 60 communication service companies, covering market research, public relations, interactive marketing, visual management and consulting.

Paul Richardson, the group's chief financial officer, said that the merger of Cordiant (with a revenue of $788 million in 2002) would increase the company's sales revenue by 300 million pounds in 2004. Martin sorrell, CEO of the group, believes that the acquisition will help to strengthen WPP's contact with major international customers and realize the company's strategic goal of business expansion in Asia and Latin America.

In June 2002, Ogilvy & Mather, a subsidiary of the group, merged with China public relations company Beijing West Coast to form West Coast Ogilvy & Mather Information Consulting Service Company (making Ogilvy & Mather the largest public relations company in China). In the same year, WPP acquired a 25% stake in Shanghai Advertising Co., Ltd. (once the largest advertising company in China). Guo Lijuan, general manager of Shanghai advertising company, pointed out that according to the WTO agreement, joint venture advertising enterprises will be controlled by foreign capital after 2003; After 2005, foreign businessmen can set up wholly-owned companies, which will surely attract more multinational groups to enter and the market competition will be more intense.

In March 2003, one of WPP's advertising companies, Batey Ads (1997 joined WPP), opened its China office in Shanghai. WPP subsidiary which opened in China in the same period also has Shanghai Alliance Advertising Company. It seems that WPP Group is fully promoting its business in China with a loose management model.