Ad Giants Omnicom, Publicis Announce Merger
July 29, 2013 at 4:10 AM (PT)
Ad agency giants OMNICOM and PUBLICIS have announced that they will merge to create the largest commonly-owned group of ad agencies valued at over $35 million. The new PUBLICIS OMNICOM GROUP will be initially headed by OMNICOM's JOHN D. WREN in NEW YORK and MAURICE LEVY in PARIS as co-CEOs, with LEVY ultimately becoming nonexecutive Chairman and LEVY sole CEO.
The merger must be approved by shareholders of both companies and regulators in EUROPE and the U.S. Among the major ad agency brands coming under combined ownershop are SAATCHI AND SAATCHI and LEO BURNETT, owned by PUBLICIS, and DDB and BBDO, held by OMNICOM.
Media investor GROUPM Global President DOMINIC PROCTOR issued a statement in the wake of the merger announcement saying, “This is an interesting move, They are making it clear that a primary motive for the merger is achieving scale in media buying. However, neither OMNICOM nor PUBLICIS was able to bring their investment teams together effectively as individual companies, so it will be fun to see if they can now do it together. Getting scale in media investment management is critical for clients, but it only works if it all joins up. We welcome a competitor in this space. Media investment management relies heavily on scale, but scale counts for nothing if it continues to be disparate.”