Publicis Omnicom merger was 'soap opera' driven by ego, says WPP boss Sir Martin Sorrell
The merger between Publicis and Omnicom was “turning into a soap opera” before the deal fell apart, according to WPP boss Sir Martin Sorrell.
Comments: WPP boss Sir Martin Sorrell
Speaking to CNBC, Sorell added his view that ego had been a factor in the deal, and appeared unsurprised that it had fallen through almost a year after the surprise agreement was announced.
“It was turning into a bit of a soap opera because both companies in their Q1 statements were saying they were good on their own,” he said.
“I think this deal was driven by ego issues and emotional issues. I think both CEOs wanted to try and dislodge WPP from its number one perch and so it was emotional and egotistical. It was also a case of eyes being bigger than your tummy.”
Announcing the collapse of the deal on Friday, co-CEOs Maurice Lévy and John Wren said: “The challenges that still remained to be overcome, in addition to the slow pace of progress, created a level of uncertainly detrimental to the interests of both groups, their employees, clients and shareholders.
“We have jointly decided to proceed upon our independent paths. We of course remain competitors, but have great respect for one another.”
The $35bn deal that would have created the biggest advertising entity in the world was reported to be in trouble in April because of tax and legal issues.
In March, Lévy told the Financial Times digital media conference in London that the merger had received 14 out of 15 judicial agreements required for the deal to go through, but said it had hit problems in China.
On his relationship with Wren, Lévy told the conference that sharing power would be challenging and insisted the deal was a "merger of equals".
“We have different point of view and come from different places, but we have the same ambition and we have decided we will be working together,” he said. “I think it will be challenging, but we know this, we know it will not be easy but at the same time we have huge respect for each other. It’s a merger of equals.”
Reacting to the news, Results International managing partner Keith Hunt told The Drum that the news could be a beneficial development for the independent agency sector.