Reuters - Video

EDITION: U.S. | U.K. | IN

9/11

What next for Publicis, Omnicom and WPP?

Friday, May 09, 2014 - 02:09

May 9 - Publicis-Omnicom's $35 billion merger collapses amid a raft of differences over how to create the world's largest advertiser. Ivor Bennett ask where it leaves the two companies - and the other big player in the sector, WPP.

▲ Hide Transcript

View Transcript

Looking back now, it's hard to believe the enthusiasm. The hugs and handshakes to celebrate what would have been an historic union. According to CCLA's James Bevan though, the doubts were always there. SOUNDBITE (English) JAMES BEVAN, CHIEF INVESTMENT OFFICER, CCLA, SAYING: "I think a lot of people questioned the industrial logic of bringing the two together. We had two very different cultures, different creative talents, quite hard to see where the synergies were really going to come from." The proposed Publicis Omnicom merger would've created the world's biggest ad agency. Bringing with it, though, a raft of regulatory headaches. The choice of CFO was another crucial sticking point. And after 10 months of bickering, the road ahead could be bumpy. SOUNDBITE (English) JAMES BEVAN, CHIEF INVESTMENT OFFICER, CCLA, SAYING: "I worry in terms of the short term outlook for the share price of Publicis. Because I do think people will be anticipating they will want to make another acquisition. I think Omnicom in contrast will go back to buying its own shares. And this is an environment where people will think about the sector writ large. And I suspect that WPP will come into the frame as people will say look, 'it's not after M&A but it's in a very good position to make a lot of money'." The collapse leaves WPP as the industry's dominant force. But according to CEO Martin Sorrell, the firm was better off while the deal was still on, poaching clients since it was announced last July. SOUNDBITE (English) MARTIN SORRELL, CEO, WPP, SAYING: "The best case would've been for it to continue ad nauseam but unfortunately it hasn't. I think we all thought it was going to collapse, or certainly we did, but we didn't think it was going to collapse so quickly." Big ticket mergers have been the talk of the market in recent weeks. Despite this one falling through, the outlook remains strong. SOUNDBITE (English) JAMES BEVAN, CHIEF INVESTMENT OFFICER, CCLA, SAYING: "There is after all around two and half trillion dollars to spend, if companies take leverage back to the normal levels in North America and Europe. There's another one and quarter trillion dollars of private equity cash still to be deployed. And that for me is an absolute recipe for people to want to make significant acquisitions." In advertising too, more deals are expected. Interpublic Group and Havas the names being mentioned.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

What next for Publicis, Omnicom and WPP?

Friday, May 09, 2014 - 02:09

Top News »

Most Popular »

Investing 201 »

Bond investors brace for the end of Fed stimulus Bond investors brace for the end of Fed...

Fri, Oct 10, 2014 - (4:03)

Arian Foster = BlackBerry? Arian Foster = BlackBerry?

Fri, Oct 25, 2013 - (3:16)

Don’t miss these red flags for IPOs Don’t miss these red flags for IPOs

Thu, Oct 10, 2013 - (2:34)

Copycat currency trading Copycat currency trading

Wed, Oct 02, 2013 - (2:28)

When to dump a winner When to dump a winner

Tue, Sep 24, 2013 - (1:55)

Where gold might again attract Jim Rogers Where gold might again attract Jim Rogers

Thu, Sep 19, 2013 - (2:05)

Why savings interest rates won't budge Why savings interest rates won't budge

Fri, Sep 13, 2013 - (2:09)

Buy local? ETFs try the trend Buy local? ETFs try the trend

Thu, Sep 05, 2013 - (2:42)

Money Clip »

Will Apple Pay transform mobile payments? Will Apple Pay transform mobile payments?

Thu, Oct 16, 2014 - (2:45)

3 things to do before disaster strikes 3 things to do before disaster strikes

Wed, Sep 18, 2013 - (1:39)

Your must-do money list Your must-do money list

Wed, Sep 11, 2013 - (1:24)

The worst "best" financial advice The worst "best" financial advice

Wed, Sep 04, 2013 - (1:42)

Forget gold: The case for REITs Forget gold: The case for REITs

Fri, Apr 26, 2013 - (1:19)

3 rules for buying a house now 3 rules for buying a house now

Thu, Apr 18, 2013 - (1:39)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Moving Pictures »

Dance of the northern lights Dance of the northern lights

Mon, Oct 20, 2014 - (1:08)

Images of September Images of September

Wed, Oct 01, 2014 - (1:00)

Still missing – MH370 Still missing – MH370

Fri, Sep 05, 2014 - (2:05)

Burning Together Burning Together

Mon, Sep 01, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

Images of August Images of August

Fri, Aug 29, 2014 - (1:00)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)