Tokyo-based ad group Dentsu is considering “strategic alternatives” for its international operation including a possible sale. 

The Financial Times first reported the story Wednesday.  Dentsu issued a statement early Thursday Tokyo time. 

Noting media reports, the firm stated, “With regards to the international business, the Company is rebuilding the business foundation and reevaluating underperforming businesses. At the same time, the Company is exploring strategic alternatives to enhance corporate value, but no decision has been made at this time."  

The FT reported that Dentsu has talked to financial firms about potential buyers for its international assets. 

In 2012 Dentsu acquired UK-based Aegis Group (for nearly $5 billion) which forms the core of its international business. 

Those operations have struggled financially in recent quarters. In February when the company issued 2024 results it reported taking a goodwill impairment charge in the fourth quarter of approximately $1.38 billion against results in the Americas and Europe Middle East & Africa regions, “reflecting a more conservative outlook for the International business.”    

At the time Dentsu also indicated that it planned to take roughly $327 billion in restructuring costs this year. “We intend to invest in optimizing headcount mainly in the International businesses, as well as implementing IT systems to further enhance efficiency in our operations.”   

Earlier this month, when it announced second quarter results, Dentsu said it was laying off 8% of its international workforce, or about 3,400 people. It also recorded a “loss of valuation” of more than $1.1 billion.  

The firm also reduced its organic growth estimate for the full year to flat from the previous estimate of +1%. And the company downgraded its full-year earnings forecast and suspended a planned dividend payment.  

“I deeply regret this situation and offer my sincere apologies on behalf of the Company,” CEO Hiroshi Igarashi stated.  

Meanwhile for the first half of the year Dentsu’s Japan business achieved record net revenue and underlying operating profit, the firm reported. 

The potential sale of Dentsu’s international operations is the latest development in a series of ownership changes at the ad-marketing holding groups over the past nine months.  

Last December Havas Group was spun off from Vivendi into a public company. Around the same time Omnicom announced it was acquiring Interpublic—a deal that is expected to close by year’s end.