Don Drapers of Advertising Are Here to Stay: Wren

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

July 29 (Bloomberg) -- John Wren, CEO at Omnicom and Maurice Levy, CEO at Publicis discuss the merger of their companies, creating the world's largest advertising agency with $23 billion in revenue to topple market leader WPP Plc. They speak on Bloomberg Television's "Market Makers."

Let's go to the new york stock exchange where both join us live.

Congratulations to you both.

Mr.

wren, our first question to you.

You have coke and pepsi under one roof.

How do you manage that sort of conflict of interest?

First, we are months and months away from having finished the transaction because of all of the regulatory approvals we have to get.

And our plan, each of us separately, will sit down with our major clients and discuss their needs, our need, and whether we can develop a meaningful solution to any issues that they have.

We have plenty of time to do that and we will do that.

Mr.

levy, good morning and congratulations on this transaction.

Publicis had a special place in the french mind.

Have you spoken about the protection, almost a cultural protection of the french interests?

Publicis is smaller.

How will you protect the uniquely french keel of publicis?

I have personally spoken to a lot of officials in france, and what i can tell you is that the reception has been overwhelmingly positive.

Publicis has a great reaction, which will create a world champion.

And they love the idea that we are part of it.

I do not anticipate any major discrepancy.

Correct i am curious about the cost cutting.

Mr.

wren, how can you achieve $500 million in synergies without any layoffs?

It is quite possible.

Just through the pure strength and complementary nature of both organizations will generate efficiencies that should be very reasonable to achieve, given that the size of the companies and how much is spent.

It is not that big of a number.

John, which your track record and building up of on nikon, you have been very active with the omnicom university.

You have 5000 or 6000 people, i would imagine, dusting off their resumes.

How will you keep those best candidates during these next few months of synergy?

How do you keep the good people?

I don't know if politics has to do with anything.

Our people and maurice's people trust us.

We are doing this to create a new paradigm within our industry, to create opportunities, not to cut people back or limit people's careers, but to create ads that were not there before.

If i could just add one word on that -- please.

Because the reaction that we have had on both sides has been overwhelmingly positive, from all people.

And they love the idea of cross opportunities with our companies.

Exactly.

When you look at the real portfolios for each, the average energy is there to enhance all of their careers.

-- the opportunity is there to enhance all of their careers.

Maurice is a veteran of the people business, as am i.. we know how important added to each of our organizations.

We spoke to martin sorrell earlier this morning on bloomberg television.

He was very complimentary of both of your management.

But at the same time, he said this is a large transaction with its dreaded word "synergy" and all of this.

Have you decided where the c.f.o. is going to sit here, new york or paris?

Or in the netherlands out of the way?

In an e-mail that he sent to me, he described the c.f.o. position.

I would be surprised if norway had nothing to say, because i would be thinking about what is wrong with our operation.

Sarah, jump in here.

I thought martin sorrell was going to send them his -- a free basket, myself.

It is not exactly a merger of equals.

It is a merger of on =, because publicis represents 37% of the combined revenue, but has 50% of the value of the combined company.

When you look at the net income levels of each and the equity values of each, they are 50-50. we approached this from the very start as a merger of equals in order to accomplish the objectives we wanted to accomplish.

And we were able to do that.

And all valuation metrics done by investment bankers and everyone else took into consideration how much money the shareholders were entitled to.

It turns out the stars or perfectly aligned and it does come out to 50-50. john, let me give you the last word here.

This is critically important.

The idea of google, google, google tomaghi "the new york times" featured this in their article this morning.

Are you going to be digital companies, or will there always be a place for a dawn draper type?

I don't want the romance to go away here.

Did you do this deal because of google and big data and all of that?

Know, the dawn draper -- don draper types are not going away.

Google is sometimes competitive with us and sometimes not.

Most of the time it is collaborative.

We want to make sure we give our people the tools so that the dawn draper of the future knows whom to write a spot for.

Everything has to be the the combined.

We will have more science, more technology, and even more and more and more creative work.

What is your outlook for the consolidation in the advertising industry and will this combined company look to do more deals?

When you look at the reaction of the stock market this morning, i think that many should send us baskets of fruit because it shows that the market is believing in further consolidation and they believe that something is going to happen.

And thanks for joining us on this big announcement.

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change