• by David Goetzl  @dgoetzl, March 7, 2008

Magna Global, formed eight years ago to help Interpublic clients gain greater negotiating leverage, is going through an evolution that could lead to the departure of veteran, well-known broadcast buyer Larry Blasius.

A departure by Blasius would follow that of Magna head Bill Cella at the end of last year. (Cella is expected to soon join the board of Hallmark Channel's parent.)

A representative for Magna, however, said Blasius is "not leaving," and remains in his post as executive vice president and director of negotiations. A call to Blasius was not immediately returned.

But IPG is undergoing a reorganization that ostensibly looks to refocus Magna's role and shift it more from an autonomous entity to one that reports jointly to IPG agencies Universal McCann and Initiative.

Sources indicated that Blasius' resulting role is uncertain and in flux--he may be "skeptical about whether the reorganization will ultimately be good" for him, one said. In the meantime, he may seek another post elsewhere.

Magna is expected to transition less from an operating role to one of information provider. It will still utilize a top executive to garner insight into trends (including pricing) in the network and cable marketplaces--and then provide the knowledge and corresponding advice to the two agencies. But it won't engage in any final deal-making.

Its research functions, headed by Steve Sternberg, will continue largely as is, and provide data to UM and Initiative. Branded entertainment head Bill Hilary will continue to advise the agencies in that field.

If Blasius were to remain at Magna, he could assume a sort of "marketplace guru" role, but his extensive experience in the throes of negotiations might lead him to seek an opportunity elsewhere. Blasius also might chafe at having to report up through Universal McCann's chief Mary Gerzema and broadcast buying head Donna Wolfe, as well as new Initiative chief Tim Spengler and TV buyer Kris Magel.

If a new Magna head is sought, that executive is expected to have a decidedly lower profile than someone of Cella's renown. The four agency executives at UM and Initiative are expected to lead any selection process.

Magna Global was formed in 2001 under the leadership of ex-IPG head John Dooner. It was hailed as a trailblazer, with its charge of seeking more favorable placement and pricing opportunities for clients by leveraging the combined dollars from IPG agencies UM, Initiative and others. (It's similar to a model employed by Group M now.) Cella, formerly of UM, was tapped to lead the initiative.

But over time, the arrangement led to friction with UM and Initiative executives, who were reluctant to cede any negotiating for their clients to Magna, sources said. Each has always made upfront buys themselves.