IPG Refutes Selling MullenLowe Amidst R/GA Sale Talks
Sources indicate that the bidder could potentially be Dmitry Korobkov, the former head of the Russian agency network ADV
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According to sources, the Interpublic Group (IPG) has turned down a bidder for the purchase of the worldwide agency network MullenLowe.
According to an industry report, IPG stated that it has not engaged with the investor's bid and has no interest in selling MullenLowe.
Sources indicate that the bidder could potentially be Dmitry Korobkov, the former head of the Russian agency network ADV.
IPG declined the offer, stating that MullenLowe is a significant member of the Group and that it was not ‘credible’.
This coincides with IPG's discussions to sell its well-known digital marketing agency R/GA to Tata Consultancy Services (TCS).
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.
R/GA's sales decreased by almost 20 per cent to $200 million last year, and it has been claimed that the company has seen customer losses and executive churn. IPG's company will probably become more efficient as a result of the discussions with TCS.
R/GA has worked with several brands, 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.
