IPG May Sell Digital Marketing Agency R/GA To TCS: Report

Interpublic Group (IPG) is looking to sell its digital marketing agency, R/GA, to Tata Consultancy Services, suggest industry reports.

Even though talks are still in progress, the Wall Street Journal reports that differences over valuation could prevent the sale from going through. R/GA has a $300 million valuation.

According to reports, R/GA lost brands and saw an increase in executive turnover last year. Its revenue also decreased by almost 20 per cent to $200 million. IPG will probably become more efficient and streamlined as a result of the discussions with TCS.

R/GA has collaborated with a number of companies, such as Samsung, Verizon, Google's Android, and Coca-Cola. In 2001, R/GA was acquired by IPG, which then acquired R/GA's parent business, True North Communications. IPG is regarded as the fourth-largest holding corporation for advertising in the world based on revenue.

The agency R/GA is present in the US, Europe, South America, and Asia-Pacific. Its core practices—media, connected communications, product and experience, brand relationship design, brand design consultancy, and specialised offerings like R/GA Health and R/GA Ventures—assist brands and businesses in defining, envisioning, and building a more human future.