LONDON (Brand Republic) – Global advertising agency holding companies Publicis and Cordiant Communications are close to creating one of the world’s largest media-buying networks in a deal which will see Cordiant’s 50% stake in Zenith Media merge with Publicis’s media arm Optimedia.
The new company will be in the world’s top five, but would be run as two distinct brands. It is thought a major attraction of the deal is an increased capability to hire more research and creative specialists.
In June, Publicis bought Saatchi & Saatchi, which owns the other half of Zenith, for £1.1bn. The deal with Cordiant would give the company full control over Zenith. Cordiant chief executive Michael Bungey is reported to favour giving up its half share in Zenith, as long as that gives Cordiant a 20%-30% stake in a larger company.
Already agreed in principle, the deal means an end to the split ownership of Zenith. This has caused problems in the past and limited the investment needed for growth.