Cliff Freeman, MDC Partners Cut Ties

http://adage.com/agencynews/article?article_id=134669

"At this stage in Cliff Freeman's evolution, both Cliff and MDC Partners have agreed that it is best for him to control 100% of his company," an MDC spokeswoman said in a statement. "This will allow him to incentivize his new management team going forward. With this in mind, MDC Partners has sold back their 19.9% share."

"I've always believed in the power of the CFP brand," Cliff Freeman said in a statement to Ad Age. "I was granted an opportunity to buy it back and, committed to the best interest of the agency and our clients, opted to do so wholeheartedly."

Published reports placed the figure MDC originally spent for its minority stake at between $3 million and $5 million, but people close to the company estimated that the value of the stake is less than $1 million.

It's not the first time the agency has found itself in this predicament with an outside owner. Saatchi & Saatchi held a stake in Cliff Freeman during the '90s but sold it back to Cliff Freeman management in 1999 for an estimated $4.6 million.