Publicis and Omnicom, two of the world’s biggest advertising companies, are in late-stage talks about a combination, said a person with knowledge of the situation.
The deal would be a merger of equals, said the person, who asked not to be named because the deliberations are private. Paris-based Publicis and New York-based Omnicom would be the largest ad company in the world, topping current leader WPP. The talks could still collapse.
A merged entity would have a market value of more than $30 billion. That size and geographic reach would give the combined entity more heft to negotiate better ad rates for media placements on television, the Internet and in print for its clients. A deal could also act as a hedge against the possibility of losing clients since each holding company owns dozens of ad agencies.
Peggy Nahmany, a spokeswoman for Publicis, didn’t immediately return a call seeking comment. Joanne Trout, a spokeswoman at Omnicom, declined to comment.
Omnicom advanced 1.3 percent yesterday in New York to close at $65.11. Publicis rose 1.5 percent to 59.35 euros in Paris trading.
Publicis, Omnicom and London-based competitor WPP have all grown through consolidation in recent decades as they vie with each other for accounts. Annual ad spending across the globe may rise 5 percent next year to $543.9 billion, according to ZenithOptimedia, a research firm that’s part of Publicis.