17173: With Kraft Heinz Breakup, There Will Be Blood, Not Ketchup.

 

Adweek reported Kraft Heinz is ending its 10-year-old megamerger, splitting into two separate businesses.

 

Expect divorces from White advertising agencies to follow shortly. Hell, don’t be surprised if Kraft Heinz in-house creative resources are adversely affected too.

 

Unlike Heinz Ketchup, the moves will likely happen quickly—and produce major splatters.

 

Kraft Heinz to Separate 10 Years After Megamerger 

 

The company’s headquarters will remain in Chicago and Pittsburgh

 

By Mark Mwachiro

 

Kraft Heinz is set to unwind its union 10 years after completing its megamerger, splitting into two separate businesses, the multinational food company announced Tuesday morning.

 

Global Taste Elevation will encompass brands including Heinz, Philadelphia cream cheese, and Kraft Mac & Cheese. A leader for this new business has yet to be announced, with a search already underway.

 

Meanwhile, Maxwell House, Oscar Mayer, Kraft Singles, and Lunchables will be part of North American Grocery, led by Carlos Abrams-Rivera, CEO of Kraft Heinz.

 

Kraft Heinz said the current names are working titles, and it will reveal official names for the two businesses at a later date. The company’s headquarters will remain in Chicago and Pittsburgh.

 

Rumors of the split of the consumer packaged goods giant had been circulating for some time, with The Wall Street Journal reporting in July that Kraft Heinz was looking to get around $20 billion from the spinoff of one of its grocery units.

 

The 2015 merger, orchestrated by Warren Buffett and investment firm 3G Capital Partners, never achieved the success that its masterminds had envisioned. Rather than boosting the profitability of the two companies’ collection of processed food and condiment brands, the company’s stock price has fallen by more than 60%, and its market value has taken a hit of roughly $57 billion, currently sitting at about $31 billion, the Journal reported. 

 

Kraft Heinz stock was down by as much as 6% after the separation news was announced Tuesday morning.

 

“Kraft Heinz’s brands are iconic and beloved, but the complexity of our current structure makes it challenging to allocate capital effectively, prioritize initiatives, and drive scale in our most promising areas,” said Miguel Patricio, executive chair of the board for Kraft Heinz.

 

Abrams-Rivera added, “This move will unleash the power of our brands and unlock the potential of our business. This next step in our transformation is only possible because of the commitment of our 36,000 talented employees, who deliver quality and value for consumers every day.”

17037: Contemplating The Classic, Contradictory Corporate-Creative Collision.

 

Adweek published a pathetic perspective bemoaning the lack of discussion on creative in the impending Omnicom acquisition of IPG.

 

The author appears to be out of touch at least, and likely soon to be out of the industry—if they aren’t gone already.

 

As regularly recognized by this blog, the holding companies have fueled a commoditization of people, processes, and places. Talent is replaceable, platforms are generic, and White advertising agencies are modular.

 

Anyone who has extensively worked in Adland would be hard-pressed to distinguish the differences between enterprises within the holding companies.

 

Omnicom has already officially blended its ‘creative’ companies into a single entity: Omnicom Advertising Group. Acquired IPG shops will presumably be absorbed into the muck—or unceremoniously pruned from of the system.

 

Longing for the mythical Golden Age of Adland is pointless in times where corporate leaders receive golden parachutes and workers get golden showers.

 

IPG-Omnicom’s Silence on Creative Is Deafening

 

Their merger will radically change the industry. Just not the way they think it will

 

By Patrick Simkins

 

This is a big week for people who love cost synergies—IPG and Omnicom have gotten a step closer to conglomerating with yesterday’s thumbs-up from shareholders.

 

Every time I see an update to this story, I scan for mentions of anything creative hidden away in all the exciting new capabilities that InterpubliCom will offer. It’s not in their statements; it’s barely mentioned on investor calls. Unless I missed a memo since I left an IPG agency, isn’t that what we do? Use creativity to solve problems for brands?

 

So if I’m an employee, or a client, what is there to be excited about with a merger like this? Efficiencies? Data? AI? Shareholder value? I remember the first time I knew I wanted to increase shareholder value for a living. It’s why I get out of bed in the morning!

 

I’m not sure why we’re all treating the data and AI-ification of creative as a foregone conclusion instead of the giant, waving red flag that it is. Since no one seems to be offering a defense of creatives, I felt compelled to write about this. (But I’m an art director, so god help us.)

 

Omni-Public says we can expect annual savings of $750 million. Better data, some AI efficiencies, some redundancies. Sure, but my guess is that doesn’t get you all the way to the big number. Based on my own proprietary and highly accurate “mentions of creative per investor call” analysis, I can guess which areas will make up the balance of these savings.

 

The creative process is slow, inefficient, and as we write, design, and test out our thinking, it sometimes reveals flaws in the work that preceded it. We solve problems, but we also cause them. I’m starting to wonder if the silhouette from the Mad Men intro was actually thrown from the roof.

 

Look, I get why creative is an easy target. If you think of us as just “words and pretty pictures” people, then of course our numbers on the balance sheet are hard to justify. Forget that brands are bringing creatives in-house at record numbers, and that new, brand-forward category entrants are causing major headaches for companies like Coca-Cola. (And Pepsi can’t just acquire every new Poppi.)

 

The industry, it seems, has decided that this is the way advertising needs to be. Taking our time to think was an error. Personalization is king. And our abilities should be measured by the quantity and speed of our output.

 

But these holding companies are building on shaky ground. We’re one weird billionaire takeover, one social media ban, or one class action AI lawsuit away from major changes to the ad landscape. And in reducing creativity to an afterthought, they risk making themselves obsolete.

 

First, they’ll accelerate consumer fatigue with a glut of content. Does a brand really need 500,000 customized images to share on social media? I’m not arguing against AI or efficiency here (I started in studio—do you know how much time I’ve wasted cutting out people’s hair for comps?) but we make more content because the platforms tell us we need more content, and we trust their black-box algorithms to balance the stuff audiences don’t want to see with the stuff they do.

 

The more low-quality content we pump out, the more we tip that scale in the wrong direction. And personalization won’t matter if no one is paying attention. (If I were a strategist, I’d put a killer stat here.)

 

Second, they’ll either overwork or lay off the very people who can save them. A Wall Street Journal article from back in December cited one brand using AI to reduce a three-week storyboard process to three days. That speed could mean creatives will have more time to iterate and explore concepts, but my gut says these already overworked teams will just be expected to manage more projects with less time to properly execute each. And, be honest, despite the proliferation of all these cool new tools, does anyone really think we’re experiencing a creative renaissance? 

 

As the head-rolling continues, we’ll see burned-out, disenfranchised talent continue to change the industry from the outside. Holding companies will lay off creatives who will start agencies. They’ll fire strategists who will build their own brands.

 

And finally, with everyone gone and InterOmniGroup having achieved peak efficiency, some lone executive will look up and say, “Wait. If my agency’s process is based on tools that brands also have access to—or can build themselves—why on Earth do they need us?”

 

Will any of that happen? Who knows, I’m just a creative. But we’re in a time of major uncertainty, and I don’t think success will come from rewiring our entire processes to have less time to think.

 

For now, out here on the front lines, the discarded and disillusioned are getting work in whatever ways they can. Former big agency talent and brands that recognize that the job is about more than “pumping out content” are finding one another, and we’ll continue to run circles around the big shops.

16926: IPGolden Parachute Ploy.

 

MediaPost reported on IPG top executives with “Golden Parachute” deals connected to the proposed Omnicom acquisition, whereby the leaders could pocket up to $80 million.

 

That’s roughly $80 million more than can be expected by the countless IPG drones who will become redundant—ie, unemployed—via the corporate scheme.

 

In short, IPG honchos get golden parachutes, while IPG staffers get golden showers.

 

IPG Brass Reap $80M ‘Golden Parachute’ From Omnicom Deal

 

By Joe Mandese

 

Four top executives of Interpublic will receive a total of more than $80 million as part of a so-called “Golden Parachute” agreement tied to Omnicom’s acquisition of the agency holding company.

 

The payments include $49 million to Interpublic CEO Philippe Krakowsky, $15.7 million to CFO Ellen Johnson, $11.8 million to General Counsel Andrew Bonzani, and $6.2 million to Controller and Chief Accounting & Business Transformation Officer Christopher Carroll, according to a registration statement filed with the Securities and Exchange Commission on Friday.

 

According to the statement, Interpublic shareholders will have the opportunity to vote to approve the golden parachute payments, as part of the Omnicom/Interpublic merger agreement.

 

“IPG seeks the support of its stockholders and believes that stockholder support is appropriate as the executive compensation programs are designed to incentivize executives to successfully execute a transaction such as that contemplated by the merger from its early stages until consummation,” the statement notes.

 

Assuming the merger goes through, Krakowsky will become co-president and COO alongside long-time Omnicom exec Daryl Simm, as well as a member of the board of Omnicom.

 

According to Omnicom’s last executive compensation SEC filing on March 28, 2024, Simm earned $8,753,780 in total compensation as COO of Omnicom in 2021.

Meanwhile, Friday’s statement does not indicate what, if any, roles Johnson, Bonzani and Carroll will have in Omnicom following the merger, but they also are among Interpublic’s top executive committee shareholders:

 

16883: Repackaging Bullshit In Adland.

 

Advertising Age reported on packaging redesign for Hostess, a brand acquired a year ago by J.M. Smucker Co.

 

Not sure why Ad Age published such promotional fluff, yet there are connections to the proposed Omnicom–IPG merger.

 

There will undoubtedly be redesigns as the two White holding companies blend all the White advertising agencies. Like Hostess, the packaging might change, but the products will remain sugarcoated, unhealthy garbage.

 

Why Hostess redesigned Twinkies, Donettes and Ding Dongs packaging

 

The new look comes a year after the brand was acquired by J.M. Smucker Co.

 

By Erika Wheless

 

Hostess, the maker of Donettes, Twinkies, Cupcakes and Ding Dongs, is getting a new look with updated packaging and logos as J.M. Smucker Co. attempts to fuel the brand’s growth by attracting younger consumers.

 

The sweets marketer is going with a more rounded font style and a simplified, brighter color palette. The redesigned boxes feature the word “Hostess” more prominently and retain the brand’s signature red heart while adding a cloud-shaped border around “Hostess,” a nod to the snacks’ “light and airy quality,” according to a company press release. Hostess positioned it as a more modern look meant to appeal to younger consumers.

 

The font for each brand is also a nod to an element of the snack, according to Aundrea Graver, director of marketing at The J.M. Smucker Co. For example, the “o” in “Donettes” is the shape of one of the sweet treats. “Cupcakes” has a more curly font, inspired by the curlicue icing on top.

 

“One of my favorite aspects of the work are the subtle Easter eggs embedded in how we present the product brands,” Graver said. “We wanted to leverage the inherent strength of the Hostess parent brand while celebrating what makes each of our sweet baked snacks distinct and we did just that.”

 

The new packaging also highlights that each snack is individually wrapped, which according to Graver emphasizes convenience and portability.

 

Design Bridge and Partners created the packaging design and Sarah Anne Ward Photography supported work on the updated product imagery. The new packaging will hit grocery store shelves in January.

 

Hostess last updated its logo in 2006.

 

The refresh comes about a year after Hostess was acquired by J.M. Smucker for $5.6 billion. In prepared earnings remarks last month, CEO Mark Smucker told analysts that Smucker was not satisfied with Hostess’ performance and is taking steps to “return the brand to growth.” 

 

The new packaging is the first step in updating the marketing strategy for Hostess—the snack maker has a new ad campaign planned for Hostess next year. J.M. Smucker’s bespoke Publicis Groupe team is handling the effort. 

 

Smucker said that the new look and new in-store displays are meant to drive impulse purchases. Hostess will also launch new sharing sizes for Donettes and $1 packs for its donut and cake products, Smucker told analysts. J.M. Smucker plans to co-promote Hostess with its other brands, including its packaged coffee (Smucker owns Cafe Bustelo, Dunkin’ and Folgers.)

 

In the fiscal second quarter, J.M. Smucker Co.’s net sales increased 17% to $2.3 billion. Net sales of Hostess’ snacks were $316 million.

16879: Omnicom + IPG = OMFG.

 

Advertising Age reported White holding company Omnicom will acquire White holding company IPG, effectively creating the largest White holding company on the planet.

 

The deal explains why IPG has been madly pruning companies from its network—no doubt to appear more financially attractive to acquisition suitors.

 

Let the pruning of redundancies commence.

 

Hey, the scheme offers opportunities to further defund, diminish, and disrespect DEIBA+ dedication.

 

Then again, this would be a mixed marriage between the Pioneer of Diversity and the gobbledygook-spewing enterprise recognized for leadership in diversity and inclusion.

 

In short, it’s a DEIBA+ dung heap.

 

Omnicom agrees to acquire IPG, creating world’s largest agency group

 

All-stock deal and leadership team are announced

 

By Ewan Larkin and Brian Bonilla

 

It’s official: Omnicom Group has agreed to acquire Interpublic Group of Cos., the companies confirmed today, in a deal that creates the world’s largest agency group. 

 

The combined entity, which will have more than 100,000 employees, will retain the Omnicom name and trade under the OMC ticker on the New York Stock Exchange, according to a statement from both companies. The all-stock deal is expected to close in the second half of 2025 and generate $750 million in annual cost synergies.

 

John Wren will remain chairman and CEO of Omnicom, and Phil Angelastro will continue as chief financial officer. IPG CEO Philippe Krakowsky and Omnicom Chief Operating Officer Daryl Simm will serve as co-presidents and COOs of Omnicom. Krakowsky will also be co-chair of the integration committee post-merger and sit on Omnicom’s board of directors, along with two other members of IPG’s board.

 

Omnicom and IPG had combined revenue of $25.6 billion in 2023, according to the companies.

 

“This strategic acquisition creates significant value for both sets of shareholders by combining world-class, highly complementary data and technology platforms enabling new offerings to better serve our clients and drive growth,” Wren said in a statement.

 

During an investor call held to discuss the announcement, Wren said he and Krakowsky started talking about a potential deal roughly a year ago. Both executives downplayed potential client conflicts stemming from the deal, claiming that marketers aren’t as concerned with such issues anymore.

 

“I’m not aware or threatened by any conflict as a result of us announcing that we’re joining forces,” said Wren. Moving forward, Omnicom and IPG need to assure its clients “that we still love them quite as much as we did prior to this morning,” he added.

 

Investors’ initial reaction to the deal was negative, with Omnicom’s shares tumbling more than 6% this morning in early trading.

 

Omnicom shares were trading around $97 early today, which is well below their all-time high of $107 reached last month. IPG, as the company being acquired, rose about 10% and was trading around $32, which is well below their 52-week high of $35.17 reached last March.

 

Lessons from the attempted Omnicom-Publicis merger

 

On the investor call this morning, Wren spoke about his previous attempt to merge Omnicom with Publicis, which ultimately fell apart in 2014. Wren said the difference between the two deals was that there is a better cultural fit with IPG.

 

“The difference this time around is, if you look at Interpublic and Omnicom, you look at the people that make it up, including the leadership, we actually share core values. Since the creation of both groups, I think that there’s quite a number of people who have spent time in the [each] other company over their careers,” Wren said. Because of this, a lot of “cultural unspoken things” that got in the way of the previous deal wouldn’t affect this deal, he added.

 

“Having had that experience, and putting myself in the situation where this is going to be tried twice, and both times by me, [I] took a lot of time and care as did Philippe to make certain that that the lessons learned a decade ago are not going to be repeated.”

 

Omnicom and IPG are “pretty confident” the deal will not “create any regulatory issues,” Wren said, adding that “there’s reason to believe” the incoming Trump administration will be “more friendly to business.”

 

Wren said that when Publicis and Omnicom attempted to merge, Omnicom didn’t have a “Plan B” for regulatory scrutiny. “We have prepared for those contingencies, and we’re prepared to do whatever we have to do to get regulatory approval.”

 

Wren also alluded to Omnicom being able to improve IPG’s principal-based media buying capabilities.

 

“Those are all capabilities, skills, and processes that we can absolutely lend to IPG’s client base … that they’re in the process of doing more and more with but not to the extent of the others in the competitive set,” Wren said. Earlier this year, Krakowsky alluded to IPG getting more involved in principal-based media buying due to its growing prevalence in the industry.

 

Omnicom and IPG said the combined company’s largest industry would be pharmaceuticals and health care, representing 19% of combined revenue.

 

 

The first holding company

 

Krakowsky, in a memo to IPG staff, wrote: “Today is a historic day for a company that’s shaped our industry since its inception,” noting that Interpublic became the first holding company in 1961.

 

“As we all know, we are living in an era of ever-increasing, exponential change in the consumer, technology and marketing landscapes,” he wrote. “We’ve always prided ourselves on being at the forefront of this evolution, which is why today, we’re taking another bold step forward.”

 

Krakowsky, in the memo, told staff that there won’t be any immediate changes to day-to-day operations.

 

“Ultimately, becoming a part of Omnicom will enable us to continue to invest in and prepare for a future where the pace of change is relentless,” he wrote. “Together, our new company will have breathtaking talent, reach, capabilities, and geographic presence, as well as a uniquely powerful set of platform services, positioning us for long-term success.”

16719: Accenture Acquiring Omnicom For A Song. (Alt Title: Omnicom’s Swan Song.)

 

More About Advertising speculated Accenture Song is seeking to acquire some or all of Omnicom’s White advertising agencies. This would signal an Adland apocalypse, upsetting an exclusive ecosystem where iconic agency brands are already being erased—accelerating a creative cancellation.

 

Of course, the dearth of true diversity—ie, systemic racism—in the field would not be affected at all.

 

Is Accenture Song eyeing a deal for Omnicom’s creative agencies?

 

By Stephen Foster

 

Cannes Lions is supposed to trigger deals – or put the seal on them at the Eden Roc – and an enticing thought to surface from France (a touch belatedly) is Accenture Song buying some or even all of US rival Omnicom’s creative agencies.

 

Accenture Song (formerly Accenture Interactive) is a collection of tech-based agencies, headlined by Droga5. It also includes the former Karmarama in the UK and The Monkeys in Australia although such agencies are by no means the biggest part. And Accenture Song is big, with revenues of $18bn which puts it on a par with WPP and ahead of Publicis (Accenture’s total revenue is around $70bn.)

 

Omnicom has long been built on its stellar line-up of global creative networks: BBDO, DDB and TBWA. Latterly though its emphasis has been on media and tech. Last year it bought commerce and retail media specialist Flywheel from Cannes Lions owner Ascential for $835m, its biggest acquisition.

 

Omnicom is still helmed by John Wren who, more than a decade ago, agreed a merger deal with Maurice Levy’s Publicis that would have created the world’s biggest marcoms company. This foundered for pretty obvious cultural reasons (much to the delight of then WPP boss Sir Martin Sorrell) but it indicates that Wren, whose long tenure at Omnicom may be nearing a close, is not averse to transformational deals.

 

None of the ad holding companies are making the money out of creative they used to. Back in 1990 Sorrell’s WPP thought Y&R (now disappeared into VML) was worth $4.4bn. That’s nearly half today’s valuation of the whole of WPP.

 

David Droga, now fortified by consigliere Annette King from Publicis and before that Ogilvy, clearly thinks Accenture Song’s tech, consultancy and financial resources can propel it to clear first place in the global creative stakes. Accenture has steered clear of media agencies as it has too much media consultancy business.

 

Even one of Omnicom’s creative networks would be a major statement (DDB now helmed by the UK’s adam&eveDDB may be the most likely.) All of them would be a shape-shifting exercise.

16523: PR From White PR Firms And White Holding Company Rife With White Lies.

 

MediaPost reported WPP continues to assimilate its White communications companies and simplify corporate mastheads.

 

Burson Cohn & Wolfe—formed via the 2018 blending of White PR firms Burson-Marsteller and Cohn & Wolfe—has been merged with White PR firm Hill & Knowlton to create Burson.

 

Gee, it must have been tough to decide who would issue the press release.

 

“Hill & Knowlton and BCW are two high-performing businesses with complementary strengths, shared ambitions, and many shared clients...” gushed WPP CEO Mark Read. “The new agency will be the standard bearer as the most modern, strategic, technology-driven, full-service communications offer in the industry.”

 

Yeah, and employees at the merging enterprises are about to learn how “complementary strengths” really translates to redundancy weaknesses.

 

As for the new White outhouse becoming “the standard bearer” in the industry, well, it’s not so impressive given the status is being achieved through process of elimination.

 

WPP Merging Global PR Networks, Hill & Knowlton And BCW

 

By Steve McClellan

 

WPP is merging its two largest communications agencies, Hill & Knowlton and BCW, to form Burson, effective July 1. The company said the merged agency will be focused on building and protecting reputation and will support a client roster that includes more than half of the Fortune 100 across corporate and public affairs, healthcare, technology and brand marketing.

 

Corey duBrowa, currently global CEO of BCW, has been named global CEO of Burson and AnnaMaria DeSalva, currently global chairman and CEO of Hill & Knowlton, has been named global chairman of Burson. Together, they will oversee agency strategy, client service, employee experience and culture.

 

Burson will have more than 6,000 employees in 43 markets worldwide. Its name honors the late Harold Burson, a pioneer and founding figure of modern public relations and strategic communications.

 

Burson’s leadership team will comprise a group of senior executives from both companies with appointments will be announced throughout 2024 as the integration progresses.

 

Hill & Knowlton will operate within Burson serving a select group of clients globally through strategic communications, advisory and public affairs services.

 

GCI Health and AxiCom will continue to operate as brands within Burson, offering specialized healthcare and technology communications expertise, respectively, at scale.

 

Mark Read, CEO of WPP, said: “Hill & Knowlton and BCW are two high-performing businesses with complementary strengths, shared ambitions and many shared clients... The new agency will be the standard bearer as the most modern, strategic, technology-driven, full-service communications offer in the industry.”

 

14568: WPP Expels Powerhouse Bowel Movement In Seattle.

No, it’s not an early April Fools’ Day prank. Adweek reported WPP dumped the Seattle offices of Wunderman, Possible and Cole & Weber into the magical merger toilet and flushed to create Wunderman Thompson Seattle. Thank goodness the White advertising agency has a Global Chief Talent Officer, Global Chief People Officer and Global Head of Culture to wrangle such an abundance of talent, people and culture.

WPP Folds Possible, Cole & Weber Into Wunderman Thompson Seattle as Part of ‘Powerhouse’ Merger

Possible’s Joe Crump to lead WT New York

By Patrick Coffee

Less than four months after forming Wunderman Thompson from the merger of the world’s oldest creative shop, J. Walter Thompson, and direct marketing pioneer Wunderman, WPP has made another big agency move.

The Seattle offices of Wunderman, Possible and Cole & Weber will join to become Wunderman Thompson Seattle in what is essentially an extension of this rolling merger, with the three set to share an office in Possible’s former global headquarters effective March 29.

“This is part of the same narrative [CEO] Mark Read has set for WPP,” said Wunderman Thompson North America CEO Shane Atchison, with the agencies combining their creative, technology, analytics and commerce capabilities “on behalf of our clients.”

Wunderman Thompson New York will serve as the global home base for this new entity, meaning Possible no longer has its own headquarters. And while that agency will now technically become a part of Wunderman Thompson in both Seattle and New York, the Possible brand will remain in respect to certain key clients such as AT&T, Microsoft and VW. Possible officially became part of the Wunderman network in 2017, but the two remained separate agencies. Yale & Olive, a conflict division of Wunderman, will be unaffected, according to several parties close to the matter.

Several leadership changes will occur as a result of this merger.

Justin Marshall, who had been managing director of Wunderman Seattle, will now serve as president of Wunderman Thompson Seattle. Mike Doherty, president of creative agency Cole & Weber, will take on an unspecified leadership role at the new company. And in New York, Joe Crump, who had been managing director of Possible and led WPP’s Volkswagen team, will now hold the same position at Wunderman Thompson.

Marshall and Crump will report to Atchison, the former Possible chief who returned to WPP last December after more than a year in the software startup world. He announced the move to all Seattle staff in a town hall last week.

“Seattle has a creative and entrepreneurial spirit that leverages emerging technology to create a unique environment where talent thrives,” said Atchison in a statement. “Wunderman Thompson Seattle combines three brands that each have deep roots in creativity, data and technology to create a new kind of agency that truly stands apart from the rest. I couldn’t be more excited to have Justin lead and guide this powerhouse agency.”

An agency spokesperson declined to comment on changes in the roles of Possible managing director Gareth Jones and CEO of the Americas Martha Hiefield. The combined entities currently employ approximately 350 people in Seattle, and it is unclear at this time whether any positions will be eliminated.

Prior to joining Possible, Crump spent more than 17 years with the Razorfish organization, where he founded the Product and Service Innovation Practice. Atchison praised him as “a world-class storyteller with a profound interest in emerging technology and culture,” citing the “unique lens with which Joe looks at everything around him” as an asset to the New York team.

“We’re at an inflection point for the way brands behave in the world—and for the role that agencies can play in driving that evolution,” said Crump in a statement. “It’s exciting to work with a team like Wunderman Thompson that has the depth and scale to help brands grow by combining data and technology with world class creative.”

According to multiple parties with direct knowledge of the matter, the purpose of this particular merger is to streamline the Wunderman Thompson organization by eliminating or consolidating some of its sub-brands on a region-by-region basis while simultaneously combining teams with expertise in areas like Amazon Marketplace and iOS app development, thereby offering a fuller suite of services in one place. The Possible brand will remain primarily to satisfy the demands of large-scale clients familiar with that agency’s teams.

As for whether all these organizations will eventually fold into Wunderman Thompson, one individual said, “nobody knows.” The source added that it would be a mistake to focus on the structure of the resulting network. “Moving agency chess pieces around is soulless. It’s less about finances and CEOs and more about people looking for signals: companies that are bringing them together, forming teams and giving them something to believe in,” the person said.

Much speculation will concern the so-called winners and losers in this ongoing mega-merger. Those who have spoken to Adweek see regional leadership teams within the affected networks remaining somewhat intact while individuals with global roles stand a greater chance of becoming redundant.

One person close to these changes described them as a “regionalization of the business with global connectivity at the center,” adding, “The whole thing needs to be rebuilt. Clients should take advantage of this moment and leverage the best opportunities for them.”