With Y&R/WPP set, the industry looks for an encore
The question everyone is asking, now that the long-anticipated Y&R/WPP marriage has been officially arranged, is: “What will be the next big deal?”
It’s easy to fall back on the old, familiar rumors: a Procter & Gamble-inspired Grey and Saatchi combo; another acquisition of an independent ad agency by the Interpublic Group; the sale of True North.
But amid all the talk over whose, I mean who, is bigger–WPP’s Martin Sorrell or Omnicom’s John Wren–the latter is top of mind for those wondering who’ll pull the trigger next.
As attendees at the annual 4A’s meeting, sequestered in Bermuda last week, gossiped about the news that WPP and Y&R had a deal that might unseat No. 1 Omnicom, their follow-up question was, inevitably: “What will Wren do to retaliate?”
No one would be surprised if Omnicom, which Sorrell considers his most worthy competitor, has something up its sleeve. But I’d be shocked if it had anything to do with a traditional advertising agency. My best guess is it’s an acquisition of an entertainment-oriented company. And, knowing Wren, it’s bound to be big and sexy.
But don’t count out IPG, which is in a “statistical dead heat” with the other two, as one player puts it. Word is IPG is interested in buying a huge field marketing company called Mosaic, based in Canada. And it’s the worst-kept secret in the business that IPG’s new chief, John Dooner, has been chasing Deutsch, the largest independent ad agency left.
Anyway, the potential M&A activity means all the babble about who is bigger will probably be a moot point by the end of the third quarter, when the Y&R deal is expected to be blessed. And while size does not a smart company make, I for one find the battle for supremacy quite amusing to watch, particularly when you consider the personalities involved.
I’ve always been a bit fascinated by what drives the CEOs in this business. It can’t be the money, because they could all make more elsewhere. OK, so there’s ego. Most have a pretty good dose of that, although some egos are healthier than others.
On the surface, Wren and Sorrell couldn’t seem more different: culturally, educationally, geographically. The same could be said for their personalities–at first glance.
Sorrell seems driven by the need to prove something, to be the biggest, to leave a legacy. Wren seems more interested in delivering the unexpected, and toying with competitors. As one of his colleagues likes to say, “John’s in it for sport.”
Sorrell may seem sneakier, the type you may not see until he launches a surprise attack. But Wren is equally slippery. He just comes at you more directly to make you think he’s not.
There are other similarities:
Both rose from the number-crunching side of the business and hustled to get where they are. And make no mistake: They are both clever, even devious. For those who still underestimate Sorrell’s deal-making abilities, look no further than Y&R.
Are these traits the clues to future deals? It’s impossible to say. At the very least, it will be great fun watching it unfold.
Art & Commerce: The Next Big Deal
