For MDC Partners, change seemed inevitable, even before former CEO Scoff Kauffman announced he would be stepping down from that role last September.
Recently, the chatter around some kind of deal began to intensify amidst continued financial struggles, and the expected denouement arrived yesterday when Stagwell Group, the holding company founded by former Microsoft executive Mark Penn in 2015, agreed to a $100 million investment in MDC Partners.
Referring to the deal, Penn said that he thought both Stagwell and MDC Partners “found a win-win formula.
There were a lot of formulas that would have put the company at more, rather than less, peril.
I bring $100 million to improve the balance sheet, leadership that I hope can give confidence to the partners and the agencies, and I’ve developed a plan that I’m going to be able to take to them.”
Details about what that plan entails remain unclear, and not everyone agrees that Penn’s optimistic view of the deal is accurate.