My Dinner With Randy, Analyst: Omnicom CFO Sees No Regulatory Concerns

In a note sent to investors this morning, Deutsche Bank analyst Matt Chesler updates the proposed Publicis Omnicom merger following a dinner with Omnicom CFO Randy Weisenburger, whom characterized the regulatory process as “complex,” but not something to be concerned about.

Noting that the combined entity would control no more than 20% of media-buying on a “country-by-country” basis, he said, “they are not concerned.”

That sentiment is based on regulatory filings in the U.S., the European Union, Indian and Australia, with “six to seven more to go.”

As with media-buying, Chesler said Weisenburger indicated there should be no concerns over “big data” ownership, one of the core rationales for doing the deal, indicating it was more about leveraging data and insights, than controlling it.

“The data angle is not about owning more, rather leveraging investments,” Chesler writes, adding that the two companies are also relatively aligned on the impact of disruptive media technologies> “Fundamentally, the beliefs about [emerging media] and digital/new technologies are the same, even if messaged differently.”
Next story loading loading..