After less than 24 hours of rumors, reports and speculation, Omnicom confirms acquisition of Interpublic Group.
Expected to close in the second half of 2025, the deal has the potential to shake up the advertising industry by creating a giant holding company that could take dominance from WPP and Publicis Groupe.
First, it must obtain approval from shareholders and regulatory authorities. Obstacles with the latter forced Omnicom and Publicis to cancel their $35 billion merger in 2013.
John Wren will remain president and CEO of Omnicom, according to a press release. While IPG CEO Philippe Krakowsky and COO Daryl Simm will serve as co-presidents and COO of Omnicom.
Meanwhile, in a memo to IPG’s more than 55,000 employees shared with ADWEEK, Krakowsky gave more insight into the levers behind the deal, saying the companies want to build “the first marketing and technology sales organization in the sector.”
He also addressed staff concerns: “I know each of you will have questions about your role as we become part of the Omnicom organization next year,” he said. “Please know that our focus will be on taking care of our people. »
Read Krakowsky’s memo to staff below.
All,
Today is a historic day for a company that has shaped our industry since its inception.
In 1961, Interpublic became the first holding company, creating a house of agency brands capable of serving the advertising needs of clients around the world. In the decades since, we have led the way in integrating new marketing disciplines and delivering integrated marketing to our clients. Most recently, our acquisition of Acxiom has allowed us to advance at the forefront of data integration, technology and precision in the solutions we provide to forward-thinking marketers. And, throughout, we have valued the power of ideas, know-how and creativity to differentiate brands and build businesses.
As we all know, we live in a time of exponential and ever-increasing change in the consumer, technology and marketing landscapes. We have always been proud to be at the forefront of this evolution, so today we are taking another bold step forward.
Moments ago, we issued a press release announcing that Interpublic has entered into a definitive agreement to be acquired by Omnicom, creating the industry’s premier technology marketing and sales organization.
Through this strategic combination, our companies will set a new benchmark for what is possible in our industry. Our strength and depth in all areas of ideation, media, precision marketing, data, commerce, healthcare, sports and experiential marketing, public relations, design and many other disciplines and channels will be exceptional. By joining forces, we can also accelerate innovation, as we can focus and amplify our investments in increasingly important platform services, informed by technology and AI.
Just as importantly, our two companies are not only highly complementary in their offerings, and through our geographic presence, we also share core values and culture. Together, I know we can write an exciting new chapter that will move the entire industry forward.
What happens next
Although the announcement of the deal is occurring today, the transaction is not expected to close until the second half of 2025. It is subject to approval by Interpublic and Omnicom shareholders, required regulatory approvals and under other usual conditions. With this in mind, there will be no immediate changes to our daily lives and we must all remain focused on delivering great results to our clients and supporting each other. We will keep you regularly informed as we work alongside Omnicom on our integration plans over the coming months.
I know each of you will have questions about your role as we become part of the Omnicom organization next year. Please know that our focus will be on taking care of our people and that we will be in continued contact on this front as our plans progress. We join a group of highly awarded agencies, blue-chip clients and exceptional new offerings, which together provide opportunities for career progression on a broader canvas.
Additionally, I will remain closely involved going forward, co-chairing the committee that will oversee the integration of our two organizations, serving as co-president and COO of Omnicom post-combination, and joining two other current board members. IPG’s administration on Omnicom’s Board of Directors.
Position yourself for the future
Ultimately, being part of Omnicom will allow us to continue to invest and prepare for a future where the pace of change is relentless. Together, our new company will have breathtaking talent, reach, capabilities and geographic presence, as well as a uniquely powerful set of platform services, positioning us for long-term success.
You can find additional details regarding the transaction in our attached press release And accompanying presentation.
With my thanks,
Philip
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