Leo-Mojo merger rumour denied as agency wins Mac Bank
Sources at Leo Burnett Sydney have strongly denied overnight reports form the US that there are plans for a merger with Publicis Mojo.
The web site Mediabistro quotes an anonymous source close to the agency as saying: “Publicis will merge Publicis Mojo and Leo Burnett Sydney (LB is moving to Walsh Bay next door to Publicis Mojo in April). (With an) artificial boost to bottom line by reducing wage costs.” Both agencies are affiliated with the Publicis Groupe.
The highly speculative piece also suggests that CEO Todd Sampson might lead a management buyout, although it offers little evidence to back this up. A source within the agency told Mumbrella the story was “bullshit”, pointing out there was still a significant private owenership of Publicis Mojo – the agency founded by the late Alan Morris and Allan Johnston – so it would be impractical anyway.
One piece of information within the Mediabistro item is correct though. Leo Burnett has won Macquarie Bank ‘s business. Mumbrella understands there was a five-way pitch, with the result decided in December, although it has not been officially announced.
Sampson, who has also become a familiar face to Australian TV viewers thanks to the Gruen Transfer, was unavailable for comment this morning.
As Mumbrella reported last week, Leo Burnett saw a number of staff retrenchments as a delayed reaction to the loss of the McDonald’s business last year, but has also won other new business including the ATO.
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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I’m pretty sure they are just moving into the same neighbourhood (or street, not sure). It’s a pretty big leap to think they are merging…
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