Dentsu faces collapse of international operations sale amid stagnant growth
Dentsu began exploring the sale of its UK-based international business, which generated over $4.5 billion in net revenues in 2024, as early as 2025.
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As reported by Financial Times (FT), Japanese advertising and public relations giant Dentsu’s efforts to sell its international operations are on the brink of collapse, after potential buyers and private equity firms walked away from negotiations.
Dentsu began exploring the sale of its UK-based international business, which generated over $4.5 billion in net revenues in 2024, as early as 2025. The company held discussions with several major advertising groups and private equity firms, but according to FT, the last remaining potential buyer, private equity firm Apollo, withdrew from talks in 2025, leaving only Bain Capital in the running.
While Bain Capital reportedly showed interest in the deal, it did so with significant reservations. FT's report also notes that Dentsu’s president, Hiroshi Igarashi, informed the board that Bain Capital was unlikely to proceed with the sale, effectively bringing the deal to a standstill.
Dentsu is expected to update investors during its full-year results meeting in February, confirming that its attempts to offload its international operations have failed. Instead, the company plans to address its struggling international business internally, including an aggressive restructuring initiative that involves cutting over 3,400 jobs—around 8% of its workforce in those regions.
As part of its restructuring plans, Dentsu has introduced broad changes to improve the performance of its international operations. However, these efforts follow a series of unsuccessful attempts to turn the business around, leaving Dentsu under mounting pressure from investors, including Oasis, an activist shareholder, added the report.
The failure to secure a sale would also reverse Dentsu's 2012 acquisition of UK media group Aegis for £2.3 billion. Dentsu International’s operations also include the London-based digital marketing company, Tag Group.
There are growing concerns among investors that the company’s outdated business model is unable to compete in a rapidly changing market, especially given the increasing competition from the merger of IPG and Omnicom, and the rising dominance of Publicis.
FT also reported that some shareholders fear Igarashi’s leadership might be at risk, with the possibility of a vote against his reappointment at the company's annual shareholders' meeting in March.
In summary, Dentsu is now faced with the daunting task of rebuilding its international operations, as its earlier attempts at a sale have crumbled.
