Saatchis goes to ground over failed Three Drunk Monkeys bid
Saatchi & Saatchi was today declining to comment after widespread industry commentary that the troubled ad agency had been rebuffed in an attempt to buy Three Drunk Monkeys.
Today’s Sydney Morning Herald says Saatchis is still searching for an agency to buy in a bid to restore its local fortunes.
The SMH reports that Saatchi & Saatchi Australia’s company accounts for 2009 showed that the company’s profits fell by 80 per cent to $485,000. Although the accounts for 2010 are not yet available, the agency had a further bad year with the loss of David Jones and Lion Nathan suggesting it may even have become loss making.
With the imminent launch of Dentsu, Saatchis is also likely to face even greater pressure on its hold on Toyota.
According to the SMH, Saatchis’ owner Publicis Groupe is still looking to purchase one of the few remaining independent agencies in Australia.
The purchase would have been a particularly intriguing one with the founders of Three Drunk Monkeys originally having worked at Saatchis.
Saatchis CEO John Foley did not return Mumbrella’s calls.
Tim Burrowes founded Mumbrella in 2008. He worked on Mumbrella until 2021. At various points he was editor, content director and editor-at-large.
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A retreat from an independent state by TDM wouldn’t really make sense as it removes one of the agency’s great attractions from both a client and staff perspective – very hard to believe! While there is no question Saatchi’s need to rapidly bulk up in the hyper-competitive Sydney market.
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Hi Peter
What wonderful analysis. What on earth could make them consider a “retreat from their independent state” – oh that’s right ‘money’. Money Peter is why they would consider it.
When you sell an agency you don’t just lose your independent status you get paid some money.
Also Peter I think you’ll find 3DM would be mortified to think their only point of difference is their indpenedent status. I think they would be more likely to talk about their content strategy more than independence (something that will go at some stage)
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Gough Waterhouse became an even bigger creative powerhouse after they sold to Saatchis. The Palace’s work didn’t suffer when it sold to Patts/Bates – they just got to ply their skills on even more clients. Has Clemenger’s creative reputation suffered because of BBDO’s financial involvement? Has selling to Photon put an end to BMF, BWM, or Naked? Has TBWA taking equity in Whybin’s stopped its growth, or desirability to clients? Whether they sell or not, 3DM can be just as attractive to clients, just as creative, just as unique, as they are now.
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I’m not sure I understand this argument.
In this case, if 3DM sold they would overnight cease to exist. They’d be rolled into Saatchi Sydney and be called Saatchi & Saatchi.
That’s what Saatchi is shopping for.
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surely you put your hand deeper into your pocket and buy Host, an agency with a deeper talent pool, bigger clients and stronger, mroe experienced management team
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The examples of Gough and Creative Palace et al not suffering aren’t quite the same situation as this. Then, both the buyer as well as the seller were strong agencies. Here you have a weak agency attempting to revive itself through a purchase or amalgamation. It never works – not that I know of – as it doesn’t solve the systemic issues. Saatchi’s in Sydney needs a complete reboot from top to bottom.
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