Saturday, August 3, 2013

Week 4 BOC: Omnicom and Publicis

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.



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