Dentsu and InterPublic Group merger suggested as most likely deal as further consolidation predicted
Further advertising holding company consolidation is ‘a near certainty’ according to Pivotal Research Group senior analyst Brian Weiser, who has highlighted Dentsu as the most likely company to seek a further merger next, with InterPublic Group (IPG) its most likely target.
According to MediaPost, Weiser, who released a report yesterday following the recent announcement over the proposed merger of Publicis Omnicom Group (POG), speculated that the Japanese media network Dentsu, which last year acquired Aegis, was the company most likely to make the next move, despite constant speculation over reaction from WPP.
In his report, Weiser considered comments made by Dentsu director and executive vice president, Tim Andree who indicated that the group was open to discussion over future deals, however Weiser added that being as “obvious” in his language was likely a tactic to prompt rivals WPP or Havas to make a move on IPG.
He also speculated that a merger between Havas and Dentsu would be “problematic” and concluded that “Whomever does not buy Interpublic will probably struggle if they are neither massive nor filling a niche in the industry,” adding that Interpublic, Havas or Dentsu could continue as they are, but the value of consolidation would likely drive one towards a major acquisition.
Speculation has been rife since the agreement by Publicis and Omnicom to merge to form the largest advertising holding company in the world last month, with eyes firmly on WPP to make a counter move, that has, as yet, not come. Indeed, Sir Martin Sorrell, CEO of WPP, has been positive about what the merger has meant for his own company, spotting opportunities as a result of the new industry shape.
"We believe a post-POG world presents us and other competitors, as a result, with enhanced opportunities and is at worst neutral and at best highly positive, resulting in further consolidation and concentration,” Sorrell explained last week, having reported a revenue growth of five per cent for July.
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Dentsu
Dentsu Inc. is a Japanese international advertising and public relations joint stock company headquartered in Tokyo. Dentsu is currently the largest advertising...
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Havas
Havas SA is a French multinational advertising and public relations company, headquartered in Paris, France. Havas operates in more than 100 countries.
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Interpublic Group
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WPP
WPP plc is a British multinational communications, advertising, public relations, technology, and commerce holding company headquartered in London, England. It was...
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