Omnicom in advanced talks to buy Interpublic Group

Omnicom is reportedly in advanced talks to buy Interpublic Group (IPG) in a deal that could potentially redefine the advertising industry globally amid the ongoing decline of many of its traditional practices.

According to the Wall Street Journal, the potential merger would value IPG at between US$13 billion and US14billion excluding debt, while the terms of the transaction have not been disclosed.

The new merger would have revenues of more than US$20 billion, based on 2023 figures, beating Publicis and WPP as the world’s largest holding companies.

This move comes amid the growing competition within the holding network market globally and the pressures faced by the traditional holding company model. It would see iconic ad agencies such as McCann, BBDO, TBWA, DDB and FCB come together under one roof.

IPG’s net revenue for Q3 2024 before billable expenses was US$2.24 billion, a reported decrease of 2.9% from the third quarter of 2023. Its total revenue for the first nine months of 2024 was US$7.83 billion, compared to US$7.87 billion during the same period in 2023. Meanwhile, other industry players such as Publicis Groupe, recorded 5.8% growth in the third quarter.

Philippe Krakowsky, CEO of Interpublic, said, “Net revenue in the third quarter was unchanged organically from the same period a year ago, which brings organic growth over the first nine months of this year to 1.0%. During the quarter, we saw solid contributions to growth from media services, sports marketing, data management and public relations. Our adjusted EBITA margin was 17.2%, underscoring continued operating discipline as we continue our enterprise-wide investments in growth and business transformation.”

“The quarter also continued to see progress in the evolution of our offerings and organisational structure, as we invest in the stronger, growing areas within the portfolio. The launch of Interact marks the next evolution of our marketing intelligence engine, which integrates data flows across the campaign lifecycle and consumer journey,” he added.

“This core technology connects our entire portfolio, from brand research as well as audience insights and audience creation, all the way through to creative ideation, production, commerce, and personalised CRM programs through the use of generative AI. It also powers media activation and optimisation, including earned and owned channels, delivering better marketing results across media channels and touchpoints for our clients, in real-time,” he said.

MARKETING-INTERACTIVE has reached out to IPG and Omnicom for a statement.

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