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    Merger of Omnicom and Publicis Falls Through

    By SHOOTUpdated:No Comments2794 Views
    This July 29, 2013, file photo shows Omnicom Group president and CEO John Wren, left, and Publicis Groupe chairman and CEO Maurice Levy pose for photos on the floor of the New York Stock Exchange in New York City. (AP Photo/Richard Drew, File)

    By Lori Hinnant

    PARIS (AP) --

    The $35 billion deal to combine Publicis Groupe and Omnicom collapsed due to differences over how to implement a "merger of equals" in creating the world's biggest advertising firm, the CEO of the French company said Friday.

    Maurice Levy, the strong-willed head of Paris-based Publicis, denied it was a question of a personality clash with John Wren, his counterpart at Omnicom, but rather a fundamental difference on balancing the leadership of the new firm. Levy said he was deeply disappointed that the deal announced last July fell apart.

    But, he said, "balance means balance."

    The merger was intended to help the firms counter the growing clout of Internet giants such as Facebook and Google, which can bypass advertising companies altogether, as well as strengthen growth in Asia and Latin America.

    The companies issued a joint statement late Thursday saying they mutually agreed to call off the deal because they were not able to complete the merger in a reasonable time frame.

    Omnicom Group Inc., based in New York, owns BBDO Worldwide, DDB Worldwide Communications Group and TBWA Worldwide, among other agencies. Paris-based Publicis Groupe SA runs its namesake agency as well as Leo Burnett Worldwide, Saatchi & Saatchi, and DigitasLBi.

    Levy said the two CEOs had agreed that Wren would stay on for five years and he himself would remain in place for a shorter period. But he indicated that Omnicom had pushed for an outsized management role.

    "This was a commitment that they made publicly to 60,000 people of Publicis," he told investors in a conference call. "I am 72 years old, so it's not a question of ego. I know that I have to go."

    The companies said there would be no termination fees, and Levy said the companies shared no competitive information during negotiations.

     

    Category:News
    Tags:OmnicomPublicis



    A Closer Look At Proposed Measures Designed To Curb Google’s Search Monopoly

    Thursday, November 21, 2024

    U.S. regulators are proposing aggressive measures to restore competition to the online search market after a federal judge ruled Google maintained an illegal monopoly for the last decade.

    The sweeping set of recommendations filed late Wednesday by the U.S. Department of Justice could radically alter Google's business, including possibly spinning off the Chrome web browser and syndicating its search data to competitors. Even if the courts adopt the blueprint, Google isn't likely to make any significant changes until 2026 at the earliest, because of the legal system's slow-moving wheels.

    Here's what it all means:

    What is the Justice Department's goal?
    Federal prosecutors are cracking down on Google in a case originally filed during near the end of then-President Donald Trump's first term. Officials say the main goal of these proposals is to get Google to stop leveraging its dominant search engine to illegally squelch competition and stifle innovation.

    "The playing field is not level because of Google's conduct, and Google's quality reflects the ill-gotten gains of an advantage illegally acquired," the Justice Department asserted in its recommendations. "The remedy must close this gap and deprive Google of these advantages."

    Not surprisingly, Google sees things much differently. The Justice Department's "wildly overbroad proposal goes miles beyond the Court's decision," Kent Walker, Google's chief legal officer, asserted in a blog post. "It would break a range of Google products — even beyond search — that people love and find helpful in their everyday lives."

    It's still possible that the Justice Department could ease off on its attempts to break up Google, especially if President-elect Donald Trump... Read More

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