Interpublic Group of Companies Inc.
) announced that it has sold its remaining stake in
) for $95 million. Earlier, in August 2011, the company had sold
approximately half of its stake in Facebook for $133.5
Noted under the Other Income category of the company's income
statement, the company recorded pre-tax gain of $94 million in
the current sell off. In 2011, roughly $132.2 million was
realized as pre-tax gains.
Although the value of the investment increased notably since
the time it was made in 2006, management, however, does not
consider it a part of the strategic investments of the company
any more. The company hasn't yet mentioned the alternatives that
can be employed to utilize the gain either. However, the gain
recorded in the third quarter of 2011 was used for capital loss
carry forwards, which had a 100% valuation allowance recognized
The company also received an approval from the Board of
Directors to increase its previously authorized share repurchase
program worth $300 million by $100 million. Since its
authorization in Feb 2012 till Spetember 30, 2012, the company
has repurchased shares worth $151 million. Also, the remaining
shares can be repurchased at any time since they have no
expiration date. Management considers this program a way to
enhance shareholders' value.
Interpublic Group of Companies is the third largest
advertising company in the world, offering a range of advertising
and marketing communication services. The company competes with
other industry players, such as
Omnicom Group Inc.
Publicis Groupe SA
). The company holds a Zacks #3 Rank, which translates into a
short-term (1-3 months) Hold rating.
FACEBOOK INC-A (FB): Free Stock Analysis
INTERPUBLIC GRP (IPG): Free Stock Analysis
OMNICOM GRP (OMC): Free Stock Analysis Report
PUBLICIS GP-ADR (PUBGY): Free Stock Analysis
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