Omnicom acquires Interpublic, start of the world's largest advertising group
The giant will have revenues of around 20 billion, higher than those of Publicis and Wpp. Conclusion of the deal expected by the second half of 2025
2' min read
2' min read
A big bang in the advertising world. This is what the 0peration announced in the US promises to generate, with the advertising giant Omnicom reaching an agreement to acquire its competitor Interpublic for approximately USD 13.25 billion. If it goes through, as expected in the second half of 2025, the deal will lead to the birth of the world's largest advertising conglomerate.
With a combined turnover of more than $20 billion, the new giant will be able to compete directly with large technology platforms such as Google and Meta, which are gaining ground in the advertising sector thanks to the rise of generative artificial intelligence. And it will be up against either Wpp or Publicis, which as of this year finds itself a global big player and which was the target of Omnicom's sights as long as ten years ago, before a possible $35 billion deal ended in a dead end.
"This deal allows us to take control of our future, rather than being impacted by changing technology," said John Wren, Omnicom's president and CEO, during a call with investors. The all-stock merger involves an exchange of 0.344 Omnicom shares for each Interpublic share, with Omnicom shareholders controlling 60.6 per cent of the new entity.
Omnicom includes the agencies TBWA, BBDO and FleishmanHillard, and Omnicom Media Group. Interpublic owns agencies including Weber Shandwick, McCann, FCB and Mediabrands.
Once dominated by creative agencies, advertising companies have spent the last decade acquiring assets in the technology, data and e-commerce sectors in an attempt to keep up with advertisers' demand for new services and the influx of new competition from technology giants and consulting firms like Accenture. Hence the need for the merger of the world's third and fourth largest advertising companies. The agreement promises cost synergies of $750 million within two years, thanks to savings from rationalising real estate infrastructure, optimising technology and centralising certain services.
