• by Larissa Faw , June 13, 2016

Publicis Groupe has confirmed that it has ended talks with Samsung about acquiring a stake in advertising agency Cheil Worldwide. 

Publicis had been trying to purchase 30% of the creative shop, whose market share exceeds $1 billion, according to The Korea Times. 

Publicis' demands for guaranteed business reportedly torpedoed the deal. The holding company had sought a five-year guarantee for work for Samsung Electronics, one of the biggest ad spenders in the world and a major shareholder in Cheil, the Korean newspaper reported. 

Cheil was unable to meet the demand, since the electronics firm has been gradually decreasing its ad spend. After spending $14 billion on advertising in 2014, Samsung has shifted more of its budget to research and development at the expense of marketing.  

For now, the two companies say they will continue to work together despite being unable to close the deal. "The strategic relationship with Samsung is as strong as ever and we will continue to work daily with Samsung and Cheil Worldwide to make the brand even more successful," the holding company stated.

Cheil -- once a subsidiary of Samsung -- is now separate, although two Samsung units are large shareholders in the agency. With Publicis Group now out as a suitor, Cheil is said to be talking to other potential investors.