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Potential client conflicts, Digitas’ lack of profitability and other financial matters remain sticking points as the interactive and direct marketing shop looks to strike a deal with Interpublic Group, sources said.
Digitas CEO David Kenny declined to comment, saying only that Boston-based Digitas is committed to “growing organically … around the world.” IPG execs did not return calls, but sources said negotiations that could fold Digitas into IPG’s Allied Communications Group are continuing. However, sources said IPG has not agreed to acquire the shop, which has failed to turn a profit.
IPG may believe Digitas’ $6-7 share price is inflated and is waiting for its financial picture to improve—or the share price to fall—before committing to a deal, sources said.
Should the deal be consummated, Digitas would report to IPG through Allied CEO Larry Weber, who de clined comment.
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