Stagwell agrees to $100 million stake in MDC Partners
MDC Partners is preparing to announce tomorrow that Mark Penn's Stagwell Group is making a $100 million equity investment in the holding company. Ad Age had earlier reported Stagwell was eyeing an investment.
According to information obtained by Ad Age, the holding company was slated to hold a briefing with its executive team at today at 5 p.m. with Mark Penn, who will become CEO of the holding company, to offer full details. The holding company plans to report its fourth quarter earnings results Friday morning.
The minority investment comes amid a difficult period for MDC Partners. The holding company's ailing stock continued to slide in the days after the news broke about Stagwell's interest in an investment last week. MDC shares slumped to a 52-week low of $2.01 on Thursday and closed at $2.03, down 6 cents for the day, giving MDC a market cap value of outstanding shares of just $120 million.