Advertising
Co-lead or crown? Tussle for Omnicom–IPG leadership race in India heats up
Havas signals interest in buying Dentsu’s international unit after strong Q3 performance
During earnings call, CFO and COO Francois Laroze said that the agency “certainly would consider” discussions with Dentsu.
Havas reported stronger-than-expected organic growth in the third quarter of 2025 and raised its full-year guidance, citing steady demand across its divisions and particularly sharp momentum in the United States.
French advertising group Havas has emerged as a potential suitor for Dentsu’s international operations, following comments from its chief financial officer and chief operating officer Francois Laroze that the agency “certainly would consider” discussions with Dentsu, as per global reports.
Speaking during the company’s third-quarter earnings call, Laroze’s reportedly suggested that Havas may be eyeing strategic acquisitions at a time when the global advertising landscape is undergoing rapid transformation driven by AI, consolidation, and shifting regional performance trends.
The comments come after Dentsu, in August, announced it was reviewing strategic options to enhance corporate value - including the possible sale of its international business. The Japanese group has hired bankers to evaluate options but has yet to make a decision.
Dentsu’s international assets include US-based Merkle, a digital marketing consultancy known for its data-driven capabilities, and assets from its 2012 acquisition of Britain’s Aegis Group for approximately 400 billion yen. These operations generated over $4.5 billion in net revenue last year, though recent performance outside Japan has been sluggish.
In the first half of 2025, Dentsu reported organic revenue declines of 8.9% in Asia-Pacific (excluding Japan), 3.4% in the Americas, and 2.4% in EMEA. By contrast, its home market grew 5.3% organically, highlighting an uneven global performance.
In August, Dentsu CEO Hiroshi Igarashi said the company was open to “bold structural changes,” including partnerships or divestitures, to improve competitiveness.
It has already announced of eliminating about 3,400 jobs in markets outside its home country- roughly 8% of its head count in those regions - as part of a broad restructuring. The company, which has faced slower growth in overseas markets, said it is considering “forming partnership for overseas operations” to improve efficiency and performance.
Havas’s openness to exploring a deal comes just days after rival Publicis Groupe ruled out a potential bid for Dentsu’s international arm. Speaking at an investor conference in New York, Publicis CEO Arthur Sadoun reportedly dismissed speculation linking his company to Dentsu’s assets, saying Publicis had no interest in large-scale consolidation.
“We are not interested in consolidating more of the same for the sake of efficiencies,” Sadoun recently said, adding that with AI reshaping the marketing ecosystem, Publicis is focused instead on acquiring technology, data, and AI-led capabilities that deliver immediate client value.
The timing of Havas’s comments is notable, coming amid a broader reconfiguration of global agency groups, particularly following the Omnicom–Interpublic Group (IPG) merger announcement, which is set to redefine competitive dynamics in the industry.
Meanwhile, Havas’s strong financial footing gives weight to its potential acquisition interest. The group reported 3.8% organic net revenue growth in Q3 2025, exceeding expectations and prompting a raised full-year forecast. Growth was led by a 7.4% surge in North America, aided by robust spending from existing clients and double-digit expansion in its health division.
Asia-Pacific and Africa also rebounded, delivering 8.2% growth after a weak second quarter.
“Havas delivered a strong third quarter, achieving +3.8% organic growth and demonstrating impressive commercial momentum,” said Yannick Bolloré, chairman and CEO of Havas. He credited the performance to the company’s Converged.AI strategy, which helps clients operationalize AI for marketing efficiency.
Bolloré also cited the company’s new Horizon Global joint venture with Horizon Media Holdings as a key milestone, calling it “a major strategic move” that combines both firms’ strengths into “a seamless, AI-native solution tailored to US-centric global clients.”
Following its Q3 performance, Havas raised its full-year organic net revenue growth guidance to 2.5–3.0%, up from its previous “above 2%” forecast, and projected an adjusted EBIT margin of about 12.9%, an improvement of 50 basis points.
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