IPG denies offer to sell MullenLowe amidst R/GA sale talks
IPG said that it is not interested in selling MullenLowe and has not interacted with the investor’s bid.
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The Interpublic Group (IPG), as per reports, has denied a buyer who made an offer to buy global agency network MullenLowe. The decision came while IPG is considering selling its digital marketing agency R/GA.
IPG said that it is not interested in selling MullenLowe and has not interacted with the investor’s bid, according to a report by Campaign.
Marketing/Beat reported that the bid has likely come from the Eastern European region, as pointed out by multiple sources. Some of these sources indicate that the bidder could potentially be Dmitry Korobkov, the former head of Russian agency network ADV.
IPG turned down the offer, citing it as not “credible” as MullenLowe is an important part of the Group.
The news comes amidst IPG’s talks with Tata Consultancy Services (TCS) to sell its prominent digital marketing agency R/GA.
While the negotiations are still ongoing, according to the Wall Street Journal, there is a possibility the deal might not materialise due to disagreements on valuation. R/GA is valued around $300mn.
It has been reported that R/GA has experienced executive turnover and client losses, and its revenue last year shrunk by roughly 20 percent to around $200 million. The conversations with TCS are likely to help IPG streamline its business.
R/GA has worked with various clients including Verizon, Google’s Android, Samsung, and Coca-Cola. R/GA became part of IPG in 2001 through IPG's acquisition of R/GA’s parent company, True North Communications. IPG, considered the world’s fourth-largest advertising holding company by revenue.
