MDC Partners Chairman & CEO Miles Nadal said the merger between Omnicom and Publicis opens up opportunities for his company.
It’s something like a giant, modern version of a storyline from “Mad Men”. However, unlike the fictional portrayal, the merger between two ad giants Omnicom and Publicis involves very real money.
America’s Omnicom and France’s Publicis announced this weekend that they plan to join forces to create the world’s largest advertising company. The two companies together have nearly $23 billion in revenue and are worth over $35 billion.
(Related: Rivals question $35 billion global ad deal)
The two stocks have both had a great 2013. Both Publicis Omnicom have seen their shares rise 31% so far this year. Using the S&P Advertising Index as a proxy, the industry as a whole has seen their shares move up 34% for the year.
One company that believes it might benefit is MDC Partners. Its Chairman and CEO Miles Nadal talked numbers with Talking Numbers on why he believes his company may be an unexpected winner in the merger of his two rivals.
Nadal says he is looking forward to the merger’s fallout, including talent and new opportunities that could present themselves to his company. As well, he addresses one of the most speculated aspects about this merger, namely that it was done to combat the advertising power of juggernauts Google and Facebook.
One difference Nadal thinks makes his business stand out compared to his largest competitors is that MDC is staking its fortunes on the United States. “When Warren Buffet said he’s going to make a ten-year bet on America in 2008, everybody else said ‘We’re going to Brazil, Russia, India, and China’, “ says Nadal. “MDC decided to focus on America.”
To hear Nadal on the business decision that led his company to bet on America, what the Omnicom/Publicis merger means, and whether online companies like Google and Facebook were a factor, watch the video above.
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