• by Wayne Friedman , July 10, 2008

Advertising agency conglomerate Interpublic Group has created a new media holding company called Mediabrands, but said the new structure doesn't mean its merging it's separate media agencies and/or services.

The new structure will be led by Universal McCann senior executive Nick Brien, as president and CEO. At the same time, IPG announced Matt Seiler, president/CEO of PHD, an Omincom media agency, will take Brien spot as global CEO of UM.

Brien will be responsible for global media networks UM and Initiative, IPG's centralized negotiation entity Magna and media barter group Magna Trading, IPG's dedicated Johnson & Johnson agency J3, and agencies NSA, OSI and Wahlstrom, as well as marketing accountability company MAP and IPG's Emerging Media Lab.

In a press release, Michael Roth, IPG's Chairman and CEO explained the move will "allow our media companies to share and leverage resources, as required to meet the needs of our clients in a highly complex and rapidly-changing media landscape that's being transformed by digital and the proliferation of content and media platforms."

There has been much speculation that Magna, its media negotiation unit, which until recently been called Magna Global, could be undergoing changes, and/or merge with IPG's two big media agencies Universal McCann and Initiative.

One scenario had Magna shifting more from an autonomous entity to one that reports jointly to IPG agencies Universal McCann and Initiative. Another had Magna transitioning from an operating role to one of information provider.

But in the release, IPG was quick to note that all its media services divisions will continue as separate entities.

Before joining PHD, Seiler was executive vice president at Omnicom, where he led integration efforts of the company's operating units and worked on the PepsiCo business. Prior to joining Omnicom, Seiler served as director of strategic planning at BBDO New York.

Interpublic also announced Clear Channel senior executive Michael Hudes will become president of diversified media services and strategic development for Mediabrands. Hudes had been the global director of digital media for ClearChannel. Before that, he was president/chief operating officer of AdSpace Networks, a out-of-home digital media network.