Havas Advertising of France announcing the acquisition
of Tempus, the British owner of CIA Media buying agency,
the wave of consolidation that is sweeping the industry
gathered strength. The deal, valued at an estimated $603
million, is an all cash deal and will create a media buying
powerhouse with operations in 29 countries. WPP, the world's
largest advertising and marketing group, headed by Sir
Martin Sorrell, has a 22 per cent stake in Tempus.
Earlier Publicis and Cordiant Communications
had announced their intention to combine under a single umbrella the buying power of their
Zenith Media and Optimedia subsidiaries. The former is a 50-50 venture between Publicis
and Cordiant, while the latter is a wholly-owned subsidiary of Publicis.
Publicis will control
75 per cent of the new merged entity while Cordiant will
take 25 per cent along with board representation. The
deal, expected to close in September, will create the
world's fourth-largest media buying group with combined
annual billings of E21 billion
in the media buying industry is a response to the wave
of mergers that swept the television broadcasting industry.
This resulted in the creation of big media owners who
sought to translate their growing size into higher advertising
rates. In response to this, owners of media buying agencies
have been seeking to merge their operations enabling them
to offer clients better advertising rates through their
combined buying power.
With the announcement
of these mergers, Carat, the well known British media
buying networks, remained one of the few independent networks
in the industry.