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Two Ad Companies Plan to Merge, Supplanting Industry Leader

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Two of the world’s largest advertising companies are expected to announce their merger. The Omnicom Group and the Publicis Groupe have plans to combine. Knowledgeable sources believe that the move would create a new industry leader.
The combination of Publicis and Omnicom would supplant the current advertising industry leader, WPP of London. Billed as a merger of equals, the combined market value of the two companies is more than $30 billion.
In an interview earlier this month, Publicis chief Maurice Levy expressed that he expected much of the growth in advertising will come from emerging markets, and also from digital and mobile advertising.
Omnicom, which has focused on expanding its digital operations organically, stands to benefit from one of the largest media agencies in the world, which is a division of Publicis.
Last year, revenue at Publicis increased 14 percent and Omnicom saw an increase of 2.5 percent. The combined company will be run by Mr. Levy of Publicis and Omnicom’s John Wren.
A senior research analyst said that a merger would be favorable to the ad industry, but unfavorable for media owners in traditional media.
Some concerns have been raised as to the reaction of the United States Justice Department, as well as the French government.

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Two Ad Companies Plan to Merge, Supplanting Industry Leader by
Authored by: Harrison Barnes