Omnicom Group, one of the world’s largest advertising agencies, announced its plan to acquire Interpublic Group in an all-stock deal worth over $25 billion. The combined company would have more than 100,000 employees and generate annual revenue of around $25 billion.
The move comes after years of disruption in the advertising industry, as digital ads surpassed analog channels and tech giants like Meta and Alphabet increasingly dominated the market. Omnicom’s rival, Publicis, had attempted to merge with it in 2013 but ultimately gave up due to complexities.
Omnicom CEO John Wren described the acquisition as a chance to “harness the significant opportunities created by new technologies.” However, regulatory scrutiny is likely, given President-elect Donald Trump’s signal that he may be more accepting of large mergers than his predecessor.
Under the deal, Omnicom shareholders will own 60% of the combined company, while Interpublic shareholders will retain 40%. Omnicom expects to save $750 million annually through cost-cutting measures.
Interpublic has been struggling in recent years, with revenue flat in 2023 compared to 2019 and a forecasted growth rate of just 1% for 2024. The company has sold off underperforming agencies, including Huge and R/GA.
Source: https://www.nytimes.com/2024/12/09/business/omnicom-interpublic-merger.html