Omnicom Group, the global advertising and marketing giant, is reportedly in advanced talks to acquire its rival, Interpublic Group, in an all-stock deal, according to The Wall Street Journal. The deal could value the IPG between $13 billion and $14 billion, excluding debt.
If finalized, the deal would combine the world’s third-largest ad holding company, Omnicom, with the fourth-largest, Interpublic. The potential merger is expected to draw significant regulatory scrutiny, particularly given the size and scope of the two companies, which own several leading advertising agencies and media buying and planning firms. Interpublic’s portfolio includes McCann, FCB, Mullen Lowe, Weber Shandwick, and Mediabrands, while Omnicom owns high-profile agencies like BBDO, DDB and TBWA and Omnicom Media Group. As of Friday, Interpublic was valued at $10.9 billion, while Omnicom stood at $20.2 billion.
The combined entity’s revenues would exceed $20 billion, according to 2023 figures, making it a formidable competitor to industry leaders WPP and Publicis Groupe, which posted revenues of $15 billion and $13 billion, respectively, as per reports.
The advertising landscape is undergoing significant disruption, with pressure on business exacerbated by big tech’s dominance on the ad market, media fragmentation and clients who are turning to in-housing, AI-powered tools and digital platforms for cost-effective solutions. Traditional agencies are also facing stiff challenge from firms outside the holding companies’ folds, leading many to cut rates in a race to the bottom.
Omnicom had attempted to merge with Publicis in 2013, but it was derailed by regulatory concerns. The $35 billion deal back then would have created the world’s largest advertising conglomerate.
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