WPP calls Burson sale "speculation" but stops short of outright denial — experts outline potential deal scenarios for India, globally

Fresh news of a potential sale of Burson has been set off by this story in 'The Times'. The story says that investment banker Goldman Sachs has been hired to explore a possible sale of the over 900 million US dollar entity.

 In an emailed statement, WPP told PRmoment India, "This is all speculation and isn’t anything new (see FT in Jan). We don’t comment on market rumours or speculation. Burson is a strong, integral part of WPP. Our focus is on our clients and making Burson the benchmark for communications. That’s the mission."

WPP's CEO, Cindy Rose, had said in an earnings call in February that WPP aims to save £500 million by 2028. This is on the back of a 2025 financial underperformance, characterised by an 8.1% decline in reported revenue and a significant 71.2% drop in reported operating profit. Under the new structure, Public Relations (PR) lives inside the "WPP Creative" unit, alongside advertising and design. This potentially means that PR will no longer be sold as a standalone discipline to clients but as a component within a broader, data-driven offering. For senior PR leaders accustomed to owning the client relationship, this represents a significant shift in influence and autonomy.

All these developments have sharpened focus on a possible Burson sale. To understand how such a deal would play out, PRmoment India spoke to legal experts.

3 main factors would influence the shape of a potential sale: what is the most beneficial tax structure, client safety, especially their data and protection of the 6,000 plus Burson employees worldwide.

What is the process of media and comms deals in India?

Rashi Bharadwaj, partner, CMS INDUSLAW, lays out the process for India: "Hypothetically, if there is a strategic sale to a competing entity, it may require clearance from the Competition Commission of India. But even before that, there would be two gating issues for any deal. First of all, client management and continuity. Clients would need to be notified and their interests protected. Secondly, PR is a people-heavy business; they are the assets. Therefore, employee continuity, no adverse impact on salaries or reduction of salaries, protection, gratuity and PF will need to be a priority. Regulatory clearances also take a bit more time in India."

Additionally, with the new labour codes expanding state-wise operationalisation in India, compliance with the new stricter codes will need to be considered.

As Rashi comments, "It will not be good PR for a PR firm to lose talent."

About any FEMA regulations, Rashi says FEMA allows 100% FDI in this sector. So, the level of investment will not be a barrier.

What kind of deal structure could take shape for a potential Burson sale?

Shreya Suri, partner -technology, media and communications at CMS INDUSLAW, says, "If at all a deal of this nature and scale were to be structured, one may see a potential de-merger of the entire hived off business at a global level. This would entail all the group entities hiving off their businesses and, depending on where the buyer is located, the final structure will effectively fall into place by absorbing, by way of a merger, the respective jurisdiction-specific businesses within the existing or fresh business entities of that buyer. This may likely be the most tax-efficient way to achieve this."

As WPP is a listed firm, any sale would of course have to go through regulatory clearance.

Suri further explains, "One other way of achieving transactions involving global sales may be to identify specific arms that need to be sold across jurisdictions/ regions (as they can vary), depending on the buyer. For example, many companies are able to split out different business legs based on region and buyer preferences in that region. For instance, there could be a separate set of business priorities for a buyer in MENA versus a buyer in Europe. If that happens, it would entail multiple buyers across jurisdictions, which could create some complexity. At the same time, for a massive global operation, this may be the only workable option if a single buyer is not identifiable."

The third scenario is straight-up acquisitions aside from mergers, but very often, mergers are tax-efficient. So people opt for that."

Commenting on a phased sale, Shreya says," If the whole vertical is being sold, a deferred sale is not efficient. But if, as you said, there is no single buyer to buy out the entire company or the entire vertical. Then the overall structure may look different for buyers across regions."

Buyers or Investors

The big and obvious question, of course, is whether, like FGS Global, WPP will sell off to a KKR or other investors or look for a competing entity.  Omnicom's recent restructuring likely leaves it out of the game, and Publicis Groupe chief executive Arthur Sadoun has said their group prefers buying capabilities over shares.

Burson, unlike the very specific area FGS Global operates under, has broader capabilities than high-level advisory. Therefore, both options, private investment or sale to a competitor, have their limitations. For India specifically, firms looking to enter the Indian market might be another possibility.

Either way, we are looking at a PR industry that has to evolve in step with the positive outlook on the back of GEO prioritising credible earned media over marketing content.