Publicis-Omnicom Merge Into Biggest Ad Firm

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July 29 (Bloomberg) -- Publicis Groupe SA and Omnicom Group agreed to merge in an all-stock transaction to create the world’s largest advertising company with $23 billion in revenue, toppling market leader WPP. Jones Day's Bob Profusek, Digital Driver's Scott Weitz and Bloomberg's Cristina Alesci reports on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

Advertising is pulling this deal together?

Or is it really that they are saving themselves because they realize their margins are getting crushed and they don't have a bigger advantage when it comes to digital advertising business?

That is definitely a large part of it.

They can't collect the fees from the past, so they're looking at consolidation.

What is interesting is that we will see further consolidation.

The answer is not getting better for these guys, it is becoming smarter with a big data and more analytical.

It is going to help them become competitive with the likes of google and other players.

This deal will create the biggest ad agency in the world, knocking them off of this perch.

We are shaping the players and we could see more deals out of this.

We do have a piece of sound from the interview earlier today.

This is what he had to say.

The dog draper creative guys are not going away.

They are important part of the portfolio companies we have.

Google sometimes is competitive with us, sometimes not competitive with us.

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

They seem very happy on camera.

He started on may, and more recent the publicist.

You were working on this kind of d.o.. what is the rationale?

Is it a scale?

We have saved money and we are fighting a digital battle?

It is efficiency and resources.

That is a margin impact, had revenue opportunity with the rest of it.

If i get too big, the little guys will be eating my lunch, that is not how it works.

The airline industry, you have all these other people that serve different markets.

Having there is room for all sorts of possibilities here.

Does that mean the little guy is dead?

Of course not.

I understood that you had to take one home the other day.

There is room for everybody, but there is synergy and a merger.

It might have something to do with round rock, texas.

How do you think this is really good for their clients?

Does this make sense?

I think it is not some much the mergers save the company money, but it is what they spend the money on.

What will they invest in?

I think that corporations are getting a lot of efficiencies reaching the consumer.

They have much more efficient ways to reach the consumer.

If the big agencies can marry john draper with great efficiency to deliver that message to the consumer, is a big win.

I think it is what they must do.

This is challenged.

Will they have a higher different types of people living in these big pieces of hardware?

I don't think they will have to store the data there, but i think it will have to hire a lot of different types of people that really understand big data, technology, and officially deliver the idea so that the brand gets a great value.

Is this a mile-marker that you look at in the future and say, we saw these combinations of technology companies, which saw the emergence of social media.

This is now a battle and unless the advertising companies have a relationship and get bigger and more powerful, they will get out run by the smaller digital competitors.

These are great companies in the first place that have been going digital for quite some time.

This enables them to do it better.

It doesn't mean the little guys are irrelevant, it just means this is a better way to do it.

It is not like madmen on tv, it is about technology and all of those things.

It is not about good bourbon?

It probably has some relevance but it is about bringing relevance together.

It is the product of a merger itself.

The independent agencies, this is the natural progression of things.

Will you see combinations?

There are sometimes reactions, it might not be equal reactions to things, but today was a pretty average year, a blowout day.

More stories that i can keep track of.

There is a lot going on.

What were the other two?

The optical space.

It was a huge day.

Does this mean anything?

We have been saying that mergers and acquisitions ought to be hotter, but the reality is thinking that interest rates are going up.

Buyers have been pretty disciplined on price, that is what is holding up a lot of the deal activity, the fear of overpaying.

Especially since the fed has said they will taper.

All markets are driven by a combination of everybody's perception of everything.

It is not animal instincts, but a positive.

If you look at sales over $1 billion, the premium of the number of deals that have got at a premium above 50%, a small handful of deals as opposed to last year but had 17 deals that went for a premium of over 50%. there is a lot of the buyer discipline out there.

They want to keep the deals and line.

The dow bumped up 16,000, as well.

I want to thank our deals reporter and driver media chief executive.

We will focus on retail.

It is the oldest corporation in north america.

One of the most prestigious luxury retailers.

?

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

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