The boss of STW Group says a $1 billion merger with British advertising giant WPP will give Australian agencies more power to fight back as big multinationals increasingly squeeze down their costs for ad services.
In an interview with The Australian, STW chief executive Mike Connaghan said a deal to combine WPP’s Australian operations with ad agencies operated by ASX-listed STW creates “a business that is twice the size”, and “scale is increasingly important in our game”.
The combination will bring some of Madison Avenue’s best-known advertising agencies including J. Walter Thompson and Ogilvy together with WPP-owned media agencies Mindshare, Maxus, MEC.
It will have annual revenue of $847 million and combined earnings of $142m. Under the terms of the deal, WPP’s local operations were valued at $512m, and STW at $516m.
Full content: The Australian
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Top Antitrust Expert Joins Cravath from Paul Weiss
Jan 21, 2025 by
CPI
CMA Chief Removed as UK Government Targets Regulatory Overhaul
Jan 21, 2025 by
CPI
Court Denies Dismissal in Crab Price-Fixing Lawsuit
Jan 21, 2025 by
CPI
TikTok Stays Online for Now: Trump Floats US Ownership Deal
Jan 21, 2025 by
CPI
Hong Kong Watchdog Unveils Compliance Tool for Small Businesses
Jan 21, 2025 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Pharmacy Benefit Managers
Jan 20, 2025 by
CPI
Untangling the PBM Mess
Jan 20, 2025 by
Kent Bernard
Using Data, Not Anecdotes, to Analyze Criticisms of Pharmacy Benefit Managers
Jan 20, 2025 by
Dennis Carlton
Vertical Integration and PBMs: What, Me Worry?
Jan 20, 2025 by
Lawton Robert Burns & Bradley Fluegel
The Economics of Benefit Management in Prescription-Drug Markets
Jan 20, 2025 by
Casey B. Mulligan