Deal reached to create world’s largest ad company - Omnicom, Paris-based Publicis Groupe to announce deal Sunday: reports
27 July 2013, by Greg Robb - Washington (MarketWatch)
http://www.marketwatch.com/story/deal-reached-to-create-worlds-larg...
Publicis Groupe SA and Omnicom Group Inc. have reached a merger deal to create the world’s largest advertising company, according to reports, according to media reports Sunday.
A report in The Wall Street Journal said the deal would be structured as a merger of equals. There were report on Twitter that Publicis has scheduled a news conference for Sunday for a “a major corporate announcement.”
The merged entity would have a market value of more than $30 billion and would bring some of Madison Avenue’s best-known advertising agencies under one roof.
Analysts said it would control over 40% of advertising spending on U.S. television networks.
New York-based Omnicom’s agencies include BBDO and TWBA Worldwide. Paris-based Publicis owns Leo Burnett, and Saatchi & Saatchi.
Analysts said the merger might face U.S. antitrust scrutiny.
There are also client conflicts to consider. Analysts noted that Publicis counts Coca-Cola as a client while Omnicom is in charge of Pepsi’s advertising.
News of the merger talks was first reported by Bloomberg.
The Journal said that the combined company is expected to be called Publicis Omnicom Groupe.
Omnicom Chief Executive John Wren and Publicis CEO Maurice Levy are expected to be co-CEOs of the combined company, people familiar with the situation said, according to the WSJ.
27 July 2013, by Greg Robb - Washington (MarketWatch)
http://www.marketwatch.com/story/deal-reached-to-create-worlds-larg...
Publicis Groupe SA and Omnicom Group Inc. have reached a merger deal to create the world’s largest advertising company, according to reports, according to media reports Sunday.
A report in The Wall Street Journal said the deal would be structured as a merger of equals. There were report on Twitter that Publicis has scheduled a news conference for Sunday for a “a major corporate announcement.”
The merged entity would have a market value of more than $30 billion and would bring some of Madison Avenue’s best-known advertising agencies under one roof.
Analysts said it would control over 40% of advertising spending on U.S. television networks.
New York-based Omnicom’s agencies include BBDO and TWBA Worldwide. Paris-based Publicis owns Leo Burnett, and Saatchi & Saatchi.
Analysts said the merger might face U.S. antitrust scrutiny.
There are also client conflicts to consider. Analysts noted that Publicis counts Coca-Cola as a client while Omnicom is in charge of Pepsi’s advertising.
News of the merger talks was first reported by Bloomberg.
The Journal said that the combined company is expected to be called Publicis Omnicom Groupe.
Omnicom Chief Executive John Wren and Publicis CEO Maurice Levy are expected to be co-CEOs of the combined company, people familiar with the situation said, according to the WSJ.
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