Interpublic, whose clients include Coca-Cola and General Motors, has hired investment banker Allen & Co to help it buy the unnamed New York literary agency. Talks to acquire the West Coast Hollywood talent agency are being handled separately.
Interpublic would not be the first agency to move down this path. Omnicom Group is already way ahead of its rival, having recently bought Los Angeles entertainment-marketing firm Aaron Walton Entertainment, which works for clients including PepsiCo and Levi Strauss.
Last year, Omnicom teamed up with sports marketing company Assante Sports & Entertainment in a venture to link sports stars and celebrities with corporate sponsorships. The tie-up saw its The Marketing Arm partner with Assante to form Assante Marketing Solutions to give corporate clients direct access to sports and entertainment content, as well as nearly 1,000 athletes and entertainers.
Omnicom also signed a ground-breaking deal last July that saw it foot the production costs and line up the advertising for a TV music special starring Jennifer Lopez. WPP Group has also made moves in this direction when it launched Shine last year with Rupert Murdoch's daughter Elisabeth.
By owning a literary agency, Interpublic will similarly be able to move into the content and entertainment marketplace with the possibility of becoming involved in film and television projects.
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