The Publicis-Omnicom Group was formed from the merger of Publicis and Omnicom on 28th July 2013. The merger will create world’s biggest advertising group with employees greater than 130,000 and pro-forma revenue of $22.7 billion.
John Wren, Omnicom Chief Executive and Publicis Group boss Maurice Levy will become the joint CEOs of the Group. WPP and Publicis-Omnicom will become the largest advertising group in world after this merger. The Group has over taken WPP in size. Sorell, the founder of WPP stated this merger as the ‘merger of the unequals ’.
After the merger Publicis share rose 0.1 percent at 59.40 Euros in Paris, while Omincom fell 0.6 percent to $64.75 at the close in New York. Publicis has revenue of $8.8 billion and has a market capitalization of $14.6 billion nearly as much as Omnicom, which has a market of $16.7 billion.
The merger will no doubt affect some of the biggest companies. CBS, the owner of top rated US broadcast network says they have no concern about the proposed merger.
The deal represented a massive sweep of consolidation for a business already dominated by four big companies-WPP, Omnicom, Publicis and IPG. The deal presents the scale that will help the group with things like traditional media buying. The deal also reflects the importance of scale since it relates to build and harness big data capacity.
A lot of discussion is going around on what this deal means for entity’s relative ability to harness by data and its impact on egos of various company chiefs inside and outside this partnership.