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Factbox: Publicis, Omnicom to create world's No.1 advertising firm
July 29, 2013 / 1:14 AM / 4 years ago

Factbox: Publicis, Omnicom to create world's No.1 advertising firm

(Reuters) - Publicis Groupe SA and Omnicom Group Inc said on Sunday they plan to merge in a deal that would create the world’s biggest advertising group, worth $35.1 billion.

The transaction - presented as a merger of equals - would bring the necessary scale and investment firepower to cope with rapid changes wrought by technology on the advertising business.

Here is what the combined company would look like, including recent news on both companies:

> The new company will operate under the name Publicis Omnicom and trade in New York and Paris. It will have a combined revenue of $23 billion and 130,000 employees.

> Omnicom Chief Executive John Wren and Publicis CEO Maurice Levy will jointly lead the new company for the first 30 months, after which Levy will become non-executive chairman and Wren will become CEO.

> The new holding company will be located in the Netherlands.

> Omnicom’s largest clients on the creative side include McDonald‘s, Johnson & Johnson, ExxonMobil, AT&T, Microsoft, Apple. Omnicom also works for a number of car companies such as Nissan, Volkswagen and Mercedes.

> Some of Publicis’ biggest clients are Citigroup, Procter & Gamble, Verizon, Google, L‘Oreal, General Motors, and Toyota.

> Potential for conflicts -- Omnicom works for PepsiCo, while Publicis handles Coca-Cola; AT&T at Omnicom and Verizon at Publicis; Microsoft at Omnicom and Google at Publicis.

> Omnicom’s global advertising agencies include BBDO Worldwide, DDB Woldwide and TBWA Worldwide

> Omnicom’s U.S.-based agencies are Arnell, Element 79, Goodby, Silverstein & Partners, GSD&M, Martin/Williams, Merkley + Partners, Roberts + Langer, and Zimmerman Advertising.

> Publicis-owned global agencies include Leo Burnett Worldwide, Saatchi & Saatchi, Bartle Bogle Hegarty, Fallon Worldwide, Burrell Communications, and Bromley Communications.

> Omnicom reported a slightly better-than-expected 2.4 percent rise in second-quarter profit to $289.5 million, mirroring a similar increase in revenue in its home market. Domestic revenue rose to $1.9 billion in the second quarter, accounting for 52 percent of total revenue, as advertising spending in the United States gained momentum.

> Publicis Groupe showed a 15 percent increase in net profit for the first half of 2013 to $412 million, on revenues that were up by 8.7 percent to $4.4 billion.

Reporting by Gertrude Chavez-Dreyfuss; Editing by Diane Craft

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