The notoriously rowdy Christmas parties of Soho, London's media district, may have a more sullen air this year with news of a sector mega-merger, which can only mean one thing: Job losses in the New Year.
Omnicom, owner the Dark Horses and Coffee TV agencies here in the UK, and Interpublic, the holding company for names such as McCann, and Weber Shandwick, are reportedly negotiating a merger valued at over $30 billion.
If consummated, the marriage would establish the world’s largest advertising agency. The deal, structured as an acquisition of Interpublic by Omnicom, would surpass rivals Publicis and WPP in net revenues.
Interpublic, valued at $10.9 billion, and Omnicom, worth $20.2 billion as of Friday, would together generate over $20 billion in net revenue.
Talks began in the summer, with an announcement possibly expected on Monday.
A source close to the negotiations cited by the Financial Times suggested Interpublic has been seeking a buyer, and although presented as a merger, the transaction represents a takeover by Omnicom.
The proposed deal could face intense regulatory scrutiny due to the overlap in media and creative services. It comes as traditional agencies confront challenges from tech giants like Google and Amazon, which dominate digital advertising, and the rise of AI tools reshaping the industry.
If successful, this would be the largest merger in the sector since the failed Publicis-Omnicom deal in 2013. Both Omnicom and Interpublic declined to comment.
Here in London, shares in WPP PLC (LSE:WPP) were 3% higher amid M&A interest in the sector.