Omnicom Calls Its Mega-Merger 'Substantially Complete,' Then Walks Off With Coca-Cola's Media Business

Omnicom CEO John Wren told investors on Thursday's earnings call that the company's acquisition of Interpublic Group is "substantially completed," nearly a year after the deal closed as the largest merger the agency world has ever seen. The combined company says it is on track to hit its targeted $900 million in cost savings this year, a number that has come with layoffs and the sale of what Omnicom calls noncore businesses. Q3 organic revenue grew 7.2% year over year to $6 billion, with integrated media up more than 10%.

The timing lined up nicely with other news: that same Thursday, Coca-Cola announced it is handing its North American media business to Omnicom, pulling the account from Publicis, which had held it for barely a year. It is a bit of payback math. Omnicom lost PepsiCo's entire global media account to Publicis earlier this year without so much as a pitch, and watched a few creative leaders walk out the door along the way. Landing Coke's domestic business does not erase that, but it is a decent consolation soda.

Wren insists no single person makes or breaks the shop, which is the kind of thing executives say right after losing people who apparently mattered quite a bit. Either way, Omnicom just proved the fastest way to get over an ex is to start dating their biggest rival's best client.

Source: Marketing Dive

Kyle Duford, Founder & Editor, BRNDWIRE. More from Kyle →