MDC Partners Inc. is an advertising and marketing holding company based in
New York City
New York, often called New York City or NYC, is the most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the most densely populated major city in the U ...
. MDC is structured as a partnership model, in which it initially acquires a majority stake in its partner agency, leaving a percentage of ownership with the founder. It has more than 50 partner firms worldwide.
In August 2021, following the merger of The Stagwell Group with MDC Partners, Stagwell formed Stagwell Media Network, a group of multichannel agencies.
History
MDC Partners was founded as Multi Discipline Communications in 1980 in
Toronto
Toronto ( ; or ) is the capital city of the Provinces and territories of Canada, Canadian province of Ontario. With a recorded population of 2,794,356 in 2021, it is the List of the largest municipalities in Canada by population, most pop ...
by Miles Nadal. The company held an
IPO on October 16, 1987.
The company operated two divisions in the 1990s: Marketing and Communications and Secure Transaction Products, which included the production of checks, credit and debit cards, tickets, and stamps. Toward the end of the 1990s, MDC concentrated on growing its marketing and communications business. It continued to expand into the United States, surpassing CAD$1 billion in revenue in 2000 through acquisitions and organic growth.
In 2001, MDC formed its first partnership with the agency
Crispin Porter + Bogusky.
In January 2004, the company changed its name to MDC Partners Inc.
In 2008, MDC became the first advertising company to build a capability designed for automated, or
programmatic media trading, with the formation of Varick Media Management.
The company acquired
Anomaly
Anomaly may refer to:
Science
Natural
*Anomaly (natural sciences)
** Atmospheric anomaly
** Geophysical anomaly
Medical
* Congenital anomaly (birth defect), a disorder present at birth
** Physical anomaly, a deformation of an anatomical struct ...
in 2010 and
72andSunny in 2011.
On July 21, 2015, Miles Nadal announced his resignation as CEO in response to an investigation by the
U.S. Securities and Exchange Commission regarding executive pay and accounting practices. Nadal agreed to pay back $1.9 million in expenses and $10.6 million in salary and bonuses. He did not receive any severance or compensation for resigning. Chief accounting officer Michael Sabatino also announced his resignation and would reportedly repay $208,000 in bonuses.
MDC’s presiding director of the board,
Scott Kauffman, succeeded Miles Nadal as Chairman and CEO.
In December 2015, the company ranked 8th in ''
Advertising Age
''Ad Age'' (known as ''Advertising Age'' until 2017) is a global media brand that publishes news, analysis, and data on marketing and media. Its namesake magazine was started as a broadsheet newspaper in Chicago in 1930. ''Ad Age'' appears in mu ...
’s'' global ranking of Agency Networks, by cumulative award wins.
In June 2016, MDC announced the first acquisition under Kauffman of Swedish creative agency
Forsman & Bodenfors, forming a strategic partnership with sister agency CP+B.
In April 2018, MDC acquired a 51% majority stake in digital creative agency Instrument for an undisclosed amount.
In March 2019, Mark Penn was named CEO of MDC Partners, and The Stagwell Group invested $100 million in the company.
Operations
Company overview
MDC Partners is a global advertising holding company that invests in agency partners in the areas of advertising, marketing, media management, technology, analytics and consumer insights, direct marketing, and strategic consulting.
The company is headquartered in New York City and also operates a corporate office in
Toronto
Toronto ( ; or ) is the capital city of the Provinces and territories of Canada, Canadian province of Ontario. With a recorded population of 2,794,356 in 2021, it is the List of the largest municipalities in Canada by population, most pop ...
, where it was founded.
It earned approximately US$1.33 billion in revenue 2015.
MDC typically invests in creative and digital firms.
[ Historically, it invested in agencies during times when similar companies have scaled back on acquisitions.][ While the company has mainly invested in North American small to mid-sized agencies,][ As of 2015, 9% of the company’s revenue came from outside North America.][
MDC does not generally acquire agencies outright, but instead partners with agency management by acquiring a 51 to 80 percent initial stake.][ Instead of integrating the firms, acquired agencies continue to manage their own day-to-day operations.][ MDC provides support to the agencies in which it has invested including business strategy and financial resources.]Adweek
''Adweek'' is a weekly American advertising trade publication that was first published in 1979. ''Adweek'' covers creativity, client–agency relationships, global advertising, accounts in review, and new campaigns. During this time, it has cove ...
'' called the company an "anti-holding company".[
]
Partner Companies
Major holdings include over 50 advertising and marketing firms:CPB
CPB may refer to:
Companies
* Campbell Soup Company, an American producer of canned soups and related products
* Campbell Brothers, an Australian laboratory and manufacturing company
* Crispin Porter + Bogusky, an advertising agency
* Corporate ...
* Doner
* Exponent Public Relations
* Forsman & Bodenfors
* Gale Partners
* Hello Design
* HL Group
* Hudsun Media
* Hunter Public Relations
* Instrument
* Kenna
* KWT Global (formerly Kwittken)
* Laird+Partners
* Legend
* MDC Media Partners
* mono
* Northstar
* Path Worldwide
* Real Interactive
* Redscout
*
* Sloane & Company
* Source
* Storyline Strategies
* TEAM Enterprises
* The Media Kitchen
* TradeX Partners
* UNION
* Unique Influence
* Varick
* Veritas Communications
* VITRO
* Y Media Labs
References
External links
*
{{Authority control
Companies formerly listed on the Nasdaq
Marketing companies established in 1986
Advertising agencies of Canada