Omnicom and Interpublic Group to merge
Omnicom is reportedly in advanced talks to acquire Interpublic Group, which could see it become the world’s largest advertising group.
Per the Wall Street Journal (WSJ), a transaction between the holding companies could be announced as early as this week.
Citing “people familiar with the matter”, the WSJ reported that at a global level, the combined entity would have a net revenue of more than US$20 billion, eclipsing the industry’s current largest player, WPP, which had US$15.1 billion net revenue in 2023.
While “exact terms of the deal being discussed couldn’t be learned”, the WSJ said the merger could help both Omnicom and Interpublic become “better equipped” to deal with increasing technology and data, as ad companies continue to fight off competition from tech companies including Google and Meta, as well as the diminished demand due to generative AI.
The WSJ also reported that a deal between Omnicom and Interpublic would “likely face government scrutiny” as it would become a dominating force in the ad-buying space.
Locally, Omnicom is led by chief executive officer Peter Horgan – who is due to step down mid-2025. Agencies in the holdco stable include the recently announced new Omnicom Advertising Group – where TBWA, DDB, BBDO, and the Advertising Collective will be brought under one umbrella effective January 1, 2025 – as well as OMD, PHD, FleishmanHillard, Porter Novelli, and more.
Meanwhile, Interpublic agencies including IPG Mediabrands, Initiative, McCann, Weber Shandwick, UM, and MBCS, among others.
It is not the first time Omnicom has attempted a merger with another large player. In 2013, a move between Omnicom and Publicis Groupe was announced. It would have propelled the combined entity to Australia’s top spending media buying group.
But in 2014, the deal was called off, following reports from the US about battles of who would control the group, as well as tax and regulatory issues in several countries including China.
Mumbrella has contacted Omnicom and Interpublic for local comment.
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Lauren McNamara is the associate editor at Mumbrella, covering the agency beat. She joined in November 2022 as editorial assistant, after completing a Bachelor of Communications (Journalism) at UTS.
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