NY Ad Agencies Omnicom, Interpublic Form $30 Billion Marketing Giant

Omnicom Group is acquiring Interpublic Group in a stock-for-stock deal, creating the world's largest advertising agency with nearly $26 billion in annual revenue, Michelle Chapman reported for the Associated Press (AP).

Omnicom Chairman and CEO John Wren and Interpublic CEO Philippe Krakowsky. I Photo: Omincom Facebook

Although the names may be unfamiliar to many Americans, the agencies are behind iconic marketing campaigns like “Got Milk” (California Milk Processor Board), “Priceless” (Mastercard), “Because I’m Worth It” (L’Oréal), and “Think Different” (Apple).

The merger will result in a combined company valued at over $30 billion.

“Through this combination, we are poised to accelerate innovation and harness the significant opportunities created by new technologies in this era of exponential change,” said John Wren, Chairman and CEO of Omnicom.

“Now is the perfect time to bring together our technologies, capabilities, talent, and geographic footprints to deliver superior, data-driven outcomes for clients.”

The new entity will retain the Omnicom name and trade under the ticker symbol "OMC" on the New York Stock Exchange. The merger’s scale will allow the company to capitalize on advancements in areas such as artificial intelligence.

Under the terms of the deal, Interpublic shareholders will receive 0.344 Omnicom shares for each Interpublic share they own. Post-merger, Omnicom shareholders will hold 60.6% of the combined company, while Interpublic shareholders will own 39.4%.