Omnicom & IPG Likely To Merge: Report

According to The Wall Street Journal, the global advertising and marketing behemoth Omnicom Group is purportedly negotiating to buy out its competitor, Interpublic Group, in an all-stock transaction. With debt excluded, the IPG might be worth between $13 billion and $14 billion in the acquisition.

If the agreement is completed, Omnicom, the third-largest ad holding business in the world, and Interpublic, the fourth-largest, will merge. Given the scale and reach of the two businesses—which jointly own several top media purchasing and planning organisations and advertising agencies—the possible merger is anticipated to attract intense regulatory scrutiny. While Omnicom owns well-known agencies like BBDO, DDB, and TBWA as well as Omnicom Media Group, Interpublic's portfolio consists of McCann, FCB, Weber Shandwick, and Mediabrands. Interpublic was worth $10.9 billion as of Friday, while Omnicom stood at $20.2 billion.

According to 2023 numbers, the combined company would generate over $20 billion in revenue, making it a strong rival to market leaders WPP and Publicis Groupe, which reported $15 billion and $13 billion in revenue, respectively.

With increased competition and clients turning to in-house, AI-powered technologies and digital platforms for cost-effective solutions, the advertising industry is undergoing major disruption. A race to the bottom has caused many traditional agencies to lower their prices as a result of fierce competition and challenge from entities outside the holding corporations' folds.

In 2013, Omnicom tried to merge with Publicis, but regulatory issues caused the deal to fall through. The greatest advertising empire in the world would have been established by the $35 billion deal at the time.