Awkward Timing for Publicom Failure as Industry Meets in Beijing
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For Omnicom and Publicis, the timing of the collapse of their planned $35 billion merger was awkward: It came just as advertising leaders gathered in Beijing for the IAA World Congress. WPP CEO Martin Sorrell was among the first speakers Friday, and he couldn’t resist making a few digs about his rivals’ failed deal.
“I think that was, and if I could be so bold, an ill-considered attempt at consolidation in our industry,” said Mr. Sorrell, who frequently criticized his competitors’ merger plans. The deal’s failure means Mr. Sorrell’s WPP Group will maintain its grip on the top spot in the industry by revenue, at $17.25 billion.
“What’s interesting about the market mechanism is it shakes out deals that don’t have a basic and strategic logic and underpinning,” Mr. Sorrell said, adding that “the chickens come home to roost in the end.”
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