WPP AND Y&R DEAL CREATES THE WORLD'S LARGEST ADVERTISING FIRM
By Adnews Staff
London-based WPP Group and New-York based Young & Rubicam have officially announced a deal. Under the terms of the agreement, Y&R will join the WPP group of companies in a $4.7 billion deal that creates the world's largest advertising firm. The all stock transaction has been approved by both companies' boards of directors and will find two thirds of the new company held by WPP shareholders and the remaining third held by Y&R stockholders. All Y&R companies will continue to operate from the U.S. headquarters. Y&R's CEO Thomas Bell will become chairman of Y&R and Michael Dolan, formerly vice chairman and CFO of Y&R, will become CEO. Five Y&R directors will also join the WPP board of directors. The deal, in which Y&R becomes a wholly-owned subsidiary of WPP, is expected to close by Fall 2000.