WPP in talks to sell in-flight entertainment provider Spafax - report
Advertising agency WPP is reportedly in talks to sell Spafax, a provider of in-flight entertainment which counts some of the world's leading airlines among its clients.
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According to Sky News, WPP is working with bankers on a disposal of the business, which it bought a quarter of a century ago.
Sources told Sky that WPP hoped to fetch between £50m and £75m for Spafax.
While the proceeds would not be material to a company with a market capitalisation of £6.8bn, the process highlights the pressure on Mark Read, its chief executive, Sky said.
WPP acquired Spafax in 2000 when the group was run by Sir Martin Sorrell.
At that point, Spafax published the Tate Galleries' in-house magazine as well as providing in-flight media services to dozens of airlines.
It was understood that suitors for the business - whose clients have included British Airways, Emirates, JetBlue and Latam - include trade bidders and private equity firms.
Sky said the sale is being handled by JEGI CLARITY, an adviser on media industry deals.
At 1530 GMT, WPP shares were down 0.5% at 627.40p.
WPP declined to comment on the story.