WPP AND Y & R REACH AN AGREEMENT
By Adnews Staff
London-based WPP Group and New York-based Young & Rubicam have reportedly reach an agreement for WPP to acquire Y & R. According to a report in the New York Times, the agreement brings to an end four months of on-again, off-again talk between the two. The acquisition also makes WPP the largest advertising company in the world advancing beyond the Omnicom Group and the Interpublic Group of Companies. The acquisition also gives WPP control of advertising agencies Ogilvy & Mather and J. Walter Thompson, in addition to Y & R. Reports have estimated the deal between $5 and $6 billion in the neighborhood of $5.7 billion. A formal deal between the two is expected to be announced by the end of the week. Ad Age reported Paris-based Publicis, which has also been talking with Y&R, declined an invitation to make an offer for Y & R.