What the Omnicom-IPG merger means for the industryOmnicom's proposed merger with IPG could create the world's largest holding company. Credit: Ad Age, composite of company logos
If Omnicom Group is successful in moj phone number data buying Interpublic Group of Cos., the massive deal would not only bring together some of the agency industry's biggest brands under one roof but would put intense pressure on WPP, which would lose its long-standing status as the world's largest agency holding company.
"It looks like a plot to kill off WPP and turn it into a two-horse race with Publicis at the holding company level," said one former Omnicom executive.
The proposed merger, which the Wall Street Journal reported Sunday could go through as early as this week, would create a global giant with combined revenue of $25.6 billion in 2023, putting Omnicom back at the top of the holding company rankings. (For reference, the proposed merger of Omnicom and Publicis, announced in 2013 and called off in 2014, would have created a company with combined revenue of $23.8 billion in 2013.)
By comparison, Brian Wieser, chief executive of industry research firm Madison and Wall, noted that WPP’s net revenue was $15 billion last year and Publicis’ was $14 billion. As recently as last week, Publicis boasted in its annual holiday video that it was on the cusp of becoming the top holding company, which will be derailed if this deal goes through. (Those net revenue figures exclude transfer costs. When transfer costs are included, WPP’s 2023 revenue was $18.5 billion and Publicis’ was $16.0 billion.)
Omnicom and IPG did not respond to requests for comment.
If completed, the deal would be the largest merger of an agency holding company in history, surpassing Japanese firm Dentsu's acquisition of Aegis Group, a London-based agency company, in 2013 for about $4.9 billion.
