Alibaba and Tencent are negotiating a stake in WPP's Chinese unit, according to Sky News.
WPP, the world's largest advertising group, is in the midst of a leadership change.
(Reuters)- Chinese conglomerates Alibaba and Tencent are in talks to buy a minority stake in the Chinese unit of advertising giant WPP, Sky News reported on Saturday, citing unnamed sources.
Sky News reported that the companies, along with China Media Capital Holdings (CMC), were in initial discussions about buying approximately 20 percent of WPP China in a deal that would value the company at between $2 billion and $2,5 billion.
A WPP spokesperson declined to comment.
WPP, the world's largest advertising group, is in the midst of a leadership change.
Founder Martin Sorrell resigned in April following allegations of personal misconduct. Chief Executive Roberto Quarta said last month that the search for a replacement for Sorrell was well advanced.