NEW YORK (AP) — Omnicom and Publicis are close to striking a deal that would combine the two advertising giants into the world's largest advertising firm, according to media reports.
Such a merger would create a firm with a market value of more than $30 billion, surpassing London-based industry leader WPP PLC. A combined firm would allow for more pricing power, though the decrease in competition could present regulatory hurdles in the U.S. and Europe. Client conflicts also could be an issue.
Omnicom Group Inc., based in New York, owns BBDO Worldwide, DDB Worldwide Communications Group and TBWA Worldwide, among other agencies. Paris-based Publicis Groupe SA runs its namesake agency as well as Leo Burnett Worldwide, Saatchi & Saatchi and DigitasLBi.
Spokespeople for Omnicom and Publicis couldn't immediately be reached for comment on Saturday. Bloomberg News first reported the talks aftermarket on Friday, citing an unnamed person familiar with the deal.
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