Omnicom in mega-merger talks with Interpublic - reports

(Sharecast News) - Two of the biggest global advertising players, Omnicom and Interpublic, are in discussions over a $30bn merger that would create the world's largest advertising group, it emerged on Monday. The deal, structured as an all-stock acquisition of Interpublic by Omnicom, would result in a combined entity with net revenues exceeding $20bn, surpassing France's Publicis and the UK-based WPP, according to the Financial Times.

It would unite prominent agency networks under one umbrella, including Omnicom's BBDO and TBWA alongside Interpublic's McCann, FCB, and Mediabrands.

Both companies are primarily US-focused but have extensive global reach.

The FT said talks started in the summer, with an announcement possibly being made as early as Monday, according to sources familiar with the matter.

Industry experts anticipated significant regulatory scrutiny due to the overlap between the two groups' media and creative agency portfolios.

The merger also underscored the mounting challenges faced by traditional advertising agencies, which were increasingly competing with tech giants like Alphabet's Google and Amazon, which dominate the digital advertising landscape by providing both ad-buying platforms and marketplaces.

It would also come at a time of rapid transformation in the industry, driven by the adoption of AI tools promising faster, more cost-effective and highly targeted advertising solutions.

The merger would mark the largest deal in the advertising sector since the failed 2013 attempt to merge Omnicom and Publicis.

That deal, which also aimed to create the industry's biggest group, fell apart after extended negotiations.

Neither Omnicom nor Interpublic had commented publicly on the current talks by Monday morning, after they were first reported by the Wall Street Journal.

Reporting by Josh White for Sharecast.com.