KUALA LUMPUR (Dec 9): US-based Omnicom Group is in advanced talks to acquire rival Interpublic Group in a deal that would create the world’s largest advertising company, The Wall Street Journal (WSJ) reported.
A transaction could be announced as early as this week, the WSJ reported, citing several unidentified people. The all-stock deal is likely to value Interpublic at between US$13 billion (RM57.46 billion) and US$14 billion, excluding debt, some of the people said.
If successful, the combined entity with revenue of more than US$25 billion as of 2023 would eclipse WPP as the industry’s biggest player. WPP’s revenue last year was about US14.9 billion.
Both firms have roles in some of history’s most iconic ads, including “Think Different” for Apple, “Priceless” for Mastercard, and “Because I’m Worth It” for L’Oreal.
Omnicom includes agencies BBDO, TBWA, FleishmanHillard, and ad buyer Omnicom Media Group, and works for companies including Disney, AT&T and PepsiCo.
Interpublic, meanwhile, owns agencies such as McCann Worldgroup, Weber Shandwick, FCB and ad-buying firm Mediabrands, and has a client roster including L’Oréal, Johnson & Johnson and Geico.