The biggest shake-up in the advertising agency landscape in decades is on the cards as Omnicom closes in on a deal to acquire IPG.
Omnicom is in advanced talks to buy its fellow New York-based holding company Interpublic in a deal that would create the world’s largest advertising agency business. The Wall Street Journal first reported the news on Sunday and the official announcement could come as soon as this week.
Although reported as a merger, the proposed deal is, in essence, a takeover of IPG (valued at $10.9bn at the close of trading on Friday) by its larger competitor (Omnicom was worth $20.2bn at Friday’s close). The combined group would have net revenue of more than $20bn.
This would make it the biggest advertising holding company in the world in revenue terms, shifting the balance of power to the US from Europe, where London-based WPP and Paris-based Publicis Groupe have …