Glaxo Contacts Incumbents for $600 Mil. Review

The launch of GlaxoSmithKline’s $600 million media buying review was sparked by the union of two giant rivals with distinctly different ideas of how to handle media, sources said.

Glaxo Wellcome, said one source, advocated combined planning and buying, while SmithKline Beecham preferred to keep the two functions separate. Planning, however, will remain divided among the two entities’ former shops.

This focus on buying may allow Glaxo to avoid the internal struggles that have plagued Pfizer’s $800 million media consolidation.

The Glaxo search was expected after last year’s announcement of the merger of Glaxo Wellcome and Smith Kline Beecham [Adweek, July 17, 2000].