MAM

Publicis-Omnicom?s $35 billion merger terminated

http://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/mam-images/2014/05/09/publicis_groupe.jpg?itok=u2M27mRn

MUMBAI: Paris based Publicis Groupe and New York based Omnicom Group have decided to part ways. The duo through a press statement has jointly announced that they have terminated their proposed merger of equals by mutual agreement, in view of difficulties in completing the transaction within a reasonable timeframe. With this announcement the proposed $35 billion merger has come to an end.

A statement released by Publicis Groupe and Omnicom Group states, ?The parties have released each other from all obligations with respect to the proposed transaction, and no termination fees will be payable by either party.?

This decision was unanimously approved by the Management Board and the Supervisory Board of Publicis Groupe and the Board of Directors of Omnicom. In a joint statement, Publicis Groupe chairman and CEO Maurice L?vy and Omnicom Group president and CEO John Wren stated, "The challenges that still remained to be overcome, in addition to the slow pace of progress, created a level of uncertainty detrimental to the interests of both groups and their employees, clients and shareholders. We have thus jointly decided to proceed along our independent paths. We, of course, remain competitors, but maintain a great respect for one another.?

The announcement comes after the meeting of the Supervisory Board of Publicis Groupe, chaired by Madame Elisabeth Badinter which was held on 8 May in order to decide on the action to be taken regarding the proposed merger of equals with Omnicom Group.

The Supervisory Board examined the recommendation of the Management Board, which has unanimously voted to terminate the proposed merger of equals between Publicis Groupe and Omnicom Group.

L?vy in an earlier statement said, ?The two groups each have a brilliant track record. This merger was always one of opportunity, not necessity. The teams at Publicis Groupe worked diligently to complete the merger, but, in view of the obstacles encountered, the execution risk continued to increase. The decision to discontinue the process was neither pleasant nor an easy one to make, but it was a necessary one. Prolonging the situation could have led to the diversion of the Group's management from its principle function: to best serve our clients. Our paths diverge today with mutual respect. Publicis Groupe will continue to pursue and accelerate the implementation of its ambitious strategic plan for 2018. I am very confident in our ability to successfully see this through and to achieve all our goals.?

The deal which came in the limelight in July, if worked out, would have created the world?s largest advertising holding company, impacting mostly the Chicago advertising market. The planned merger had called for a 50-50 ownership split of the equity in the new company, Publicis Omnicom Group, with Wren and Levy serving as co-CEOs for 30 months from the closing.

According to an Ad Age report, the proposed Publicis-Omnicom merger would have created a company with a combined market cap of $37 billion and joint 2013 revenues of nearly $24 billion. Combined, the duo could have leapfrogged London-based WPP as the world's largest advertising holding company.

 

With the merger being called off, WPP Group CEO Martin Sorrell can have a good laugh. Sorrell while talking to CNBC from China said, ?I think this deal was driven by ego issues and emotional issues, I think both CEOs wanted to try and dislodge WPP from its number one perch and so it was emotional and egotistical. It was also a case of eyes being bigger than your tummy.?

 

Latest Reads

http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/19/ajay.jpg?itok=ps3iFQgu
Ajay Gahlaut resigns from Ogilvy India

Ajay Gahlaut, the deputy CCO of Ogilvy India and CCO of Ogilvy North has resigned from the company. 

MAM Media and Advertising People
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/19/biu.jpg?itok=n08pEhkj
Concept BIU Acquires the Business of Bluebytes

Concept Business Intelligence Unit (Concept BIU), one of India’s leading media monitoring agencies, has acquired the business of Comniscient Group’s Bluebytes News.

MAM Media and Advertising AD Agencies
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/19/aksha.jpg?itok=M_uxGcim
Pump it up this holiday season with Athleisure Lifestyle

Family bonding is a complex equation given how different people belonging to the same family can turn out to be- their preferences, their tastes and their opinions.

MAM Marketing MAM
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/19/quess.jpg?itok=AkeYTmvA
Quess Corp launches its first outdoor campaign, ‘’I AM QUESS’’ to expand brand awareness

Quess Corp, India’s leading business services provider, has launched its first outdoor campaign, ‘’I AM QUESS’’ to expand awareness and communicate with its customers directly.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/19/WPP.jpg?itok=CACce0wW
Brands, agencies to rewire approaches using data: CVL Srinivas, WPP

Data. A four letter word that has even the senior most executives sweating and scratching their heads. While it is a small little word, understanding how to use it, is actually very complicated. That’s why  all we’ve been hearing about in the last year is how can brands and agencies leverage the...

MAM Media and Advertising People
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/19/kisses.jpg?itok=oNlGyE6B
Hershey Kisses will now be Made in India

We’ve all been there where we ask our relatives and friends to bring us imported chocolates and candies from their trip abroad. Hershey’s Kisses have always been one such popular chocolate. The chocolates are distinct because of their unique shape and each one is delicately wrapped to make them...

MAM Marketing Brands
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/19/Indiabulls%20Group.jpg?itok=CD8VIoc0
Social Kinnect awarded digital mandate of entire Indiabulls Group

Social Kinnect, an Indian independent digital marketing agency, has been awarded the social media mandate of Indiabulls Group. The agency will be responsible for managing the social media platforms of the entire Indiabulls Group umbrella namely - Indiabulls Housing Finance Limited (IBHFL),...

MAM Media and Advertising Account
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/19/Realme_800.jpg?itok=GYvPRVrw
Grapes Digital to handle digital mandate for Realme smartphones

Realme, an emerging smartphone brand that specialises in providing high quality smartphones has extended its association with Grapes Digital. In addition to the strategic communications mandate, it has also handed over the digital media mandate to the agency. Grapes will now be responsible for...

MAM Media and Advertising Account
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/19/Metoo_Dentsu.jpg?itok=F-WK2f58
Dentsu Aegis Network removes Kartik Iyer & 3 seniors following sexual harassment allegations

Amidst the ongoing #MeToo movement, where several allegations regarding sexual harassment and sexual assault have come to light, the media and entertainment industry isn’t left behind.

MAM Media and Advertising People

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories