Investor confidence in Omnicom rises as IPG acquisition nears completion
The world’s second-largest asset manager- Vanguard, boosts its holding in Omnicom, signaling confidence as the advertising powerhouse heads into industry-shaping consolidation.
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Vanguard, one of the world’s biggest investment firms, has quietly increased its stake in Omnicom Group just days before the advertising holding company’s planned merger with Interpublic Group (IPG). The move is being viewed as a strong vote of confidence in Omnicom at a time when the global advertising industry is on the brink of major consolidation.
IPG cuts 3,200 jobs as of September 2025 ahead of Omnicom takeover
According to recent filings, Vanguard now owns a little over 12% of Omnicom after buying additional shares during the second quarter. While this is only a 1.5% increase, it matters because Vanguard is known for being a long-term, conservative investor. When a firm of its scale increases its exposure, even slightly, it often signals belief in the company’s future stability and growth. Meanwhile, a few institutional investors also added to their positions, contributing to the nearly 92% institutional ownership of the company. Company's holders include BlackRock, State Street Global Advisors, Massachusetts Financial Services Company and JP Morgan Asset Management.
Analysts remain broadly positive on Omnicom, with most firms rating the stock a “Moderate Buy” and raising price targets following steady quarterly revenue growth.
Omnicom Group reported third-quarter revenue of $4.04 billion, a 4% increase from a year earlier, driven by modest organic growth and favorable currency movements. Net income for the quarter was $341.3 million, down 11.6% from the same period in 2024. On an adjusted basis, non-GAAP net income was $436.4 million. Diluted earnings per share fell to $1.75 from $1.95 a year earlier, while adjusted earnings rose to $2.24 per share.
Why This Matters for the Advertising World
Omnicom and IPG’s merger is one of the biggest shake-ups in the industry in years. In October, Omnicom announced that the closing of the merger is expected by the end of November, and had subsequently extended the expiration date of its previously announced exchange offers and consent solicitations for IPG’s outstanding notes to November 28, 2025.
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The $13 billion merger is said to establish the largest holding company globally, altering the competitive landscape. Together, they would form a massive entity with far-reaching implications for media buying, creative operations, global client management, and competition with holding company rivals like WPP, Publicis, Havas and Dentsu. The Omnicom's acquisition of IPG would also place some of Madison Avenue’s most iconic creative agencies, such as McCann, FCB, The Martin Agency, Mullen, TBWA, BBDO, DDB, Goodby, and GSD&M, under single ownership.
Vanguard upping its stake suggests investors believe Omnicom is entering this merger from a position of relative strength, supported by steady revenue growth and stable earnings.
Several research firms have recently upgraded or maintained positive ratings on Omnicom. Analysts cited the company’s solid quarterly results and its ability to hold steady in a challenging ad market. Many believe the merger could unlock efficiencies, expand service lines, and strengthen the combined group’s competitive edge, especially in data, tech, and global media capabilities.
The Underlying Cost
Behind the optimism, the cost math is unforgiving.
Omnicom earmarked $750 million in annual synergies, largely from overlapping agencies, shared services and back-office consolidation. To prepare for the IPG integration, Omnicom incurred $89 million in Q2 repositioning costs. In July, its CFO Angelastro added, "As we get closer to closing the acquisition of IPG, we'll be evaluating ways to accelerate savings opportunities prior to the closing date. We continue to expect to achieve our cost savings target of $750 million."
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IPG, for its part, has reduced its global workforce by 3,200 employees, or just over 5%, since January 2025. According to IPG’s exchange filings for the quarter ended September 30, 2025 (Q3), the company eliminated 800 roles during the three-month period, following the 2,400 job cuts made in the first half of the year. The company also vacated approximately 135,000 square feet of office space in Q3 as part of its ongoing cost-optimization efforts.
Omnicom itself has been tightening operations, having cut 3,000 jobs in 2024, leaving it with 74,900 employees at year-end.
Vanguard’s increased investment doesn’t change these operational questions directly, but it does reinforce one thing: big investors believe the Omnicom-IPG merger will shape the next chapter of the global ad business, and they want in.
