Interpublic Group (IPG) is in talks with Tata Consultancy Services to sell its prominent digital marketing agency R/GA.
While the negotiations are still ongoing, according to the Wall Street Journal, there is a possibility the deal might not materialise due to disagreements on valuation. R/GA is valued around $300mn.
It has been reported that R/GA has experienced executive turnover and client losses, and its revenue last year shrunk by roughly 20% to around $200 million. The conversations with TCS are likely to help IPG streamline its business.
R/GA has worked with various clients including Verizon, Google’s Android, Samsung, and Coca-Cola. R/GA became part of IPG in 2001 through IPG’s acquisition of R/GA’s parent company, True North Communications. IPG, considered the world’s fourth-largest advertising holding company by revenue.
The agency, R/GA, has presence across the United States, Europe, South America, and Asia-Pacific and help brands and businesses define, envision, and create a more human future through its core practices, including media, connected communications, product and experience, brand relationship design, brand design consultancy, and specialised offerings like R/GA Health and R/GA Ventures.