$30B-Plus Mega-Merger Of Ad Giants Publicis And Omnicom Falls Apart

Publicis Omnicom Groupe isn’t going to happen after all. Just days before the networks pitch their fall schedules to advertisers, the planned $30B mega-merger of ad giants Publicis Groupe and Omnicom Groupe is off. Citing “difficulties in completing the transaction within a reasonable time frame,” the companies — which together account for about 40% of U.S. sales — today announced the death of the “merger of equals” they had hammered out in late July. Pivotal Research Group analyst Brian Wieser said at the time that plan has “significant industrial logic to it, and thus shouldn’t be ruled out as plausible.” The thinking went that the combined company could have raised its fees because it would have faced less competition. “The challenges that still remained to be overcome, in addition to the slow pace of progress, created a level of uncertainty detrimental to the interests of both groups and their employees, clients and shareholders,” Publicis Chairman/CEO Maurice Levy and Omnicom President/CEO John Wren said in a statement. “We have thus jointly decided to proceed along our independent paths. We, of course, remain competitors, but maintain a great deal of respect for one another.” (more…)

This article was printed from https://deadline.com/2014/05/30b-mega-merger-of-ad-giants-publicis-and-omnicom-falls-apart-727145/