Omnicom in Talks to Acquire Interpublic Group in Landmark Madison Avenue Deal

variety.com:

Brian Steinberg Senior TV Editor Omnicom Group is in advanced negotiations to acquire direct U.S. rival Interpublic Group in a deal that could merge two Madison Avenue giants and fundamentally recalibrate the advertising industry as it grapples with the ongoing decline of many of its traditional practices.

The two companies could announce as early as Monday that Omnicom plans to purchase Interpublic in an all-stock deal that could value the latter at between $13 billion and $14 billion without debt, according to a person familiar with the situation.

Representatives for Omnicom and Interpublic did not respond to queries seeking comment. The Wall Street Journal previously reported on the pact.

The pact will bolster Omnicom’s standing among a handful of large holding companies that dominate the sector, but have been struggling to develop new lines of revenue as the industry’s best-known products — glitzy TV commercials and print ads — are seen as less effective in spurring consumer purchases and response.