JWT Singapore, a wholly owned company of global advertising firm WPP PLC has confirmed its intentions to acquire a majority stake in ‘Hungama Digital Services’.
Source: bestmediainfo.com
Hungama Digital Media Entertainment Pvt. Ltd. currently employs the subsidiary for its marketing & promotional activities. Moreover, it also offers strategic planning, web design and maintenance, digital marketing, search engine marketing, social events and conference management among many other things.
Why is JWT interested in it? Indian scenario is evolving very fast. Under the circumstances it is always a good strategy to acquire a well-set company to achieve inorganic expansion. Hungama Digital had always tried innovative revenue & content streams. With 120 employees, Hungama Digital Services caters to some of the largest clients like Mahindra & Mahindra, Bacardi, Godfrey Philips, Britannia Industries, Tupperware India etc. A statement from JWT confirms, “This investment continues WPP’s strategy of developing its networks in fast-growing and important markets and sectors.” Additionally, Facebook recently awarded the company with “Preferred Marketing Developer” Badge!
Michael Maedel, president, JWT Asia Pacific has further added that the acquisition is one of many that will be taking place in the near future. Such acquisitions are a norm for larger companies which are looking to expand to new & emerging markets like India. In April this year, French company Publicis Groupe had acquired digital ad agency Indigo Consulting. As India continues to grow as a lucrative market, companies will continue to flock here looking for newer avenues for revenue generation.
The new owner has chosen to retain all the staff & will operate Hungama Digital Services as an independent agency offering engagement platform across online and offline deliveries. Hungama’s another subsidiary, ‘Hungama Promo Marketing’ will also be merged with this new entity, apparently for accelerating the growth of JWT within India.
Do you think it is wise to sell such an investment?
