Advertising network Media Square is reported to have knocked back an offer from the management of The Gate Worldwide in an attempt to buy back ownership of the company.
According to Marketing Services Financial Intelligence, the Gate was the largest contributor to the network’s advertising business over the last year with an underlying profit of £3.2m, and could now face a breakaway by the marketing executives having failed to win back control.
The speculation follows reports last week that Media Square itself, headed up by chairman Roger Parry (pictured), was looking to merge the whole business or find a buyer.
The network includes agencies such as The Gate Worldwide, CST, Fourninety, Homes & Marchant, LloydNorthover, CMW, IAS B2B Marketing, Twentysix, Wax Communications, Illuminas and Smarts.
The Telegraph has speculated that potential mergers could take place with rival networks such as The Digital Marketing Group or The Mission.
Last year, the network reported an operating profit of £2,1m.