Consolidation among big ad companies is top of mind for senior executives in Cannes this week.
After reports have emerged from The Australian at the Cannes Lions International Festival of Creativity that suggest additional WPP mergers will take place, we explore the underlying reasons that allow consolidation to continue. .
WPP plc CEO Martin Sorrell cited cost pressures on ad firms as one reason why consolidation will continue. Meanwhile Michael Roth, chief executive of Interpublic Group, often seen as a takeover candidate, said there was no need for Interpublic to do a deal but he would study an attractive offer if it were to arrive.
Mr. Roth, pictured at right, told CMO Today in an interview that ”everyone in the industry knows that if there is a transaction who the likely candidates may be,” he said. “We all know each other, if someone is interested in talking, that’s what they should do.”
In a separate interview, Mr. Sorrell took his latest poke at rivals Omnicom Group and Publicis Groupe SA, which called off a planned merger last month.
Read the full story in the Wall Street Journal here.