According to the Financial Times, the company has San Francisco-based programmatic firm Mightyhive in its sights.

In response to press reports, S4 Capital’s board confirmed that it is currently – “as it often is” – in discussion with a number of “digital marketing services businesses” regarding a “possible acquisition”.

The board said in a statement: “The possible transaction, if consummated, would be in line with the company’s stated strategy of creating a new era, new media solution embracing data, content and technology in an always-on environment for global, multi-national, regional and local clients and for millennial-driven digital brands.”

However, S4 did not provide any further information, stating: “There can be no certainty as to whether any transaction will occur nor as to the terms of any possible transaction.”

Sorrell told Bloomberg this week that the company would be “taking an initiative in digital media planning and buying very soon”.

Any acquisition would be S4 Capital’s second play following its purchase of Dutch digital agency MediaMonks in July. The company’s strategy is to build a “multi-national communication services business focused on growth,” Sorrell said at the time of S4’s launch.