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A merger to create the world's largest advertising company is essentially done between Omnicom...

A merger to create the world's largest advertising company is essentially done between Omnicom (OMC) and Publicis Groupe (PUBGY.OB), according to various reports. The combined $30B company would be a merger of equals, however, with no premium to current share prices -- though size should allow it to negotiate better ad rates and retain clients more easily.
Comments (6)
  • TGC004
    , contributor
    Comments (444) | Send Message
     
    I can't wait to sell my OMC stock on Monday. Any merger of consequence with a French company is destined for disaster.
    27 Jul 2013, 06:37 PM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (6263) | Send Message
     
    interesting point... my first thought is that this provides less competition and greater opportunitnies for the 3rd place firm to shine.

     

    These deals always offer the better rates mumble/jumble, but customers usually aren't happy with the combined firms inability to focus on clients due to the size and distractions from the merger.
    29 Jul 2013, 02:01 AM Reply Like
  • Herr Hansa
    , contributor
    Comments (3080) | Send Message
     
    This would appear to really leave IPG far behind in advertising. However, I would expect some culling of executives, if regulators allow the merger, so IPG may pick up some talent.
    27 Jul 2013, 06:51 PM Reply Like
  • James Sands
    , contributor
    Comments (2099) | Send Message
     
    IPG seems to be estimated to grow faster than OMC. I am just beginning to cover these two, so I'm not sure how they compare over the past 5 years or so against one another.

     

    And Geico seems to be a very successful client for IPG too, based on value of those particular advertisements.

     

    I will definitely be attempting to put IPG in perspective based on the new merger.

     

    How these two compete or compare to digital and mobile advertising and marketing, especially video advertising is what I feel is most important to consider for the future.
    28 Jul 2013, 06:23 PM Reply Like
  • Herr Hansa
    , contributor
    Comments (3080) | Send Message
     
    The Martin Agency handles Geico, amongst other big clients. I think it helps to look at the talent at individual shops, which provides a look at who attracts the clients. So if people leave OMC or Publicis, we can look at WPP and IPG to see where people may land, and whether clients may eventually follow. Many major advertising contracts are subject to annual revue. This may also be a great time for WPP and IPG to pick up small independent shops with digital talent, because their rivals will be busy with a merger.
    28 Jul 2013, 06:52 PM Reply Like
  • James Sands
    , contributor
    Comments (2099) | Send Message
     
    Thanks again for those perspectives Herr Hansa.

     

    My gut feeling was maybe IPG would offer an interesting play, but going to do some due diligence first.
    28 Jul 2013, 07:06 PM Reply Like
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