Around the Net

IPG Considers FCB-Draft Merger

The X In a move that has untold but potentially wide-ranging implications for its clients--many of whom are some of the largest marketers in the nation--the Interpublic Group of Companies is considering combining two of its largest ad agency units. The plan calls for merging Draft, which specializes in direct marketing, and Foote Cone & Belding, a traditional, full-service ad agency with a large interactive division, FCBi. Executives at both agencies acknowledged in internal memories that talks were underway to explore synergies and said the ultimate goal was to develop a plan that would provide clients with a broader range of marketing communications services. "We must be open to new, forward-thinking ideas that are responsive to the changing realities of marketing," Michael I. Roth, chairman and chief executive of Interpublic, said yesterday. "In order to better meet the evolving needs of our clients, bringing agencies with complementary resources and expertise closer together, as well as breaking down internal silos, clearly makes sense. A closer working relationship between FCB and Draft may help us accomplish these ends." But the idea was also rife with potential pitfalls. Some executives said privately that despite their best efforts the whole idea may come to naught. The executives used phrases like "It could blow up" and "It's not a done deal" to characterize the potential outcome.



Read the whole story at New York Times »

Next story loading loading..