Publicis Said in Late-Stage Talks With Omnicom

REPLAY VIDEO
Your next video will start in
Pause
  • Info

  • Comments

  • VIDEO TEXT

July 26 (Bloomberg) -- Publicis Groupe SA and Omnicom Group Inc., two of the world’s biggest advertising companies, are in late-stage talks about a combination, said a person with knowledge of the situation. Olivia Sterns reports on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

And omnicom are in late stage talks.

Olivia has on the details.

What did we know about the potential for this?

If this happens, the person with knowledge of the talk tells us it will be a merger of equals.

If it goes through, it is a big if.

Combining publicis with omnicom , this would create the biggest advertising company in the world.

The talks could still fall apart.

This would be even bigger.

What is in it for both of them if they combined customer what's the real advantage in there?

It is interesting.

By becoming the biggest player,, it gives them more leverage.

It helps them get lower rates further clients.

Both of these companies are buying media space on television and the internet.

The second premise these media outlets were business, ultimately, they should be able to cut better deals.

Clients would like that.

The deal could act as a hedge against a possibility of losing clients.

Each holding company owns several ad agencies of their own.

With that much influence, could this raise the eyebrows of regulators?

These two operations have a lot of overlap here in the u.s. and europe.

It will attract scrutiny.

Combine publicis and omnicom would spend $3 billion in ad placement last year.

I would be 41% of global advertising.

-- that would be 41% of global advertising.

Another company would have 32%. the merger would create a behemoth in the space.

When ever we see sites started to produce price advantage among the smaller company cannot compete.

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