Omnicom and Publicis made news headlines. The two companies have
decided to merge together. Creating the world’s largest advertising firm worth
more than 35 billion dollars. With a new company name Publicis Omnicom Group.
“Founded in 1986, Omnicom generates just over half of its
revenue from U.S. clients, and about one-quarter from European and British
markets combined. The company's stock has risen 31 percent in the last 12
months, recently peaking at $67.43 on the New York Stock Exchange.” If the two companies do face a block in their
plans. If Omnicom and Publicis merge the will own 40 percent of United States
advertisement industry. “Twice as much as the nearest competitor, WPP, according
to Brian Wieser, an analyst at Pivotal Research Group in New York.”
Both
companies will be subject to a regulatory approval in the U.S. and Europe.
Since will be controlling such high percentage of the market. This increase can
be a bad factor because of the declined of competition. If they own a large
percent of the market who are they really competing with? Maybe the benefits
out way the negative.
The company plans to base in
Netherland and will keep headquarters in both New York and Paris. “The merged group
will have more than 130,000 employees globally and will be larger than WPP.”
In hopes that the
combination of talent will be tremendously exceptional creating better leverage
in skills. The companies will be led by Omnicom CEO John Wren and
Publicis CEO Maurice Levy. One of the many benefits of this combination is that
the companies will advance in digital advertising and improve traditional
advertising.
No comments:
Post a Comment