Advertising Age reported on speculation of a merger starring Havas and WPP.
Such a move would counter the Roserrection Plan fuzzily presented by WPP CEO Cindy Rose, whose ambition to stage a turnaround for the beleaguered White holding company involves being “simpler, more integrated, powered by media, data, and AI, efficiently priced and designed to deliver growth and business outcomes.”
Then again, desperation could prompt abandoning ambition—and abandoning ship.
Havas–WPP deal could be in the works
By Brian Bonilla
The Omnicom-IPG merger might not be the only major holding company deal in play: A combination or partnership between WPP and Havas is being considered, Ad Age has learned.
According to two people with knowledge of the situation, a deal or combination of some sort is being explored. One of these people described “serious talks” between the two, while the other said WPP has not engaged in conversations with Havas. Multiple people said that Havas is exploring the possibility of raising capital, and conceivably involving private equity, to see if a potential deal could work.
Havas declined to comment, and a WPP spokesman said, “We do not comment on speculation.”
A Havas/WPP merger would result in the world’s second-biggest agency company based on revenue. Following the completion of its merger with Interpublic Group of Cos., Omnicom Group will be the agency world’s biggest holding company. Omnicom expects to complete the acquisition of IPG this month.
World’s 10 biggest agency companies
WPP (including Havas) would rank as the world’s second-biggest agency company based on revenue, behind Omnicom (including IPG). Ranked by 2024 worldwide revenue. Dollars in billions.
Havas spin-off from Vivendi
Puteaux, France-based Havas in December 2024 became an independent publicly traded company after it was spun off from Vivendi, a French entertainment and media group. Vivendi shareholders in December 2024 approved the spin-off, which was previously disclosed in Vivendi’s April 2024 letter to shareholders.
Havas has shown it is open to conversations and partnerships recently.
François Laroze, the company’s chief financial officer and chief operating officer, said during its October earnings call that Havas “would consider” a potential partnership or deal with Dentsu. Havas also recently launched a joint venture with Horizon Media.
Industry executives say an acquisition by London-based WPP would be challenging given its current financial struggles and depressed share price. WPP lowered its full-year organic revenue growth guidance and reported weak third-quarter results in late October.
WPP CEO Cindy Rose, who took on the role on Sept. 1, has been open about WPP’s need for simplification in its offering to clients. However, other industry executives say a deal could help increase WPP’s value.
WPP’s stock price has fallen more than 60% since the beginning of 2025. Earlier this month, the shares were trading at their lowest level since 1998.
Contributing: Bradley Johnson
No comments:
Post a Comment