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It's a wonderful.
Cut that mess on Wall Street is to advertising giants announce a 35 billion dollar merger with the combined company now surpassing.
The number one industry leader in that would be WPP.
Should Madison avenue rivals be worried that we spoke to WPP group's sir Martin Sorrell here's what she had to say.
This is 8000000009.
Billion dollars of revenue Omnicom is fourteen delivering yet.
Army comedy giving him credit for 50% of the company's.
And it merger of equals physical and I think the manager -- cool.
Rarely look at the last we have with DaimlerChrysler -- -- -- because he has and that didn't work.
Okay he takes a little bit of smack talk -- and takes it up a level but at what he's the competitor and I get and I understand what -- -- would say that but let's break it all down James Dix.
Is what bush securities senior research analyst.
You cover on the -- Brent I do -- WPP and I PG not publicists are okay.
So you heard Martin -- talk about exactly what he thinks he doesn't think he's worried at all about this but I I look at it from a client perspective.
Everybody's talking about oh how is it possible one represents a Pepsi another one represents Coke number one.
Will we see some Max mass exodus of clients.
I don't think so I think these two companies are too Smart to do something which they really thought was gonna pose material risk to their key client bases.
You could -- -- on the margins he could see some maybe more movement in certain types of business.
I I tend to think it's it's best -- now likely.
Let's explain to people how this works -- purpose -- this that you all understand that these two competitors comic con and who policies who are now linking together.
They both have some of the same people as clients we pulled up the list.
VW Toyota McDonald's -- Kellogg Kraft dime like GM Johnson & Johnson you know lever.
They're both represented by some of those you do not understand I want people to understand that that they spread the wealth that way so.
How does this meaningful for shareholder -- one of these stocks.
Yeah -- you can argue it both ways right I mean because as you point out they they actually do work first of our clients across many industries.
So you wonder well how is combining gonna make it that much easier to get a greater share of the spending and business from these companies.
It doesn't seem to have been hard firm you know some of these clients to make two phone calls instead -- one in order to coordinate the campus.
-- and yet to some extent that's the argument that they're trying to -- in terms of the revenues synergies so it's -- revenue synergies let's move on to.
Deal making now will we see a lot of job cuts.
I mean they talk about 500 million dollars -- annual savings that they want to get to within five years.
And they talk about around 400 million dollars of expense that they're gonna have to incur.
Over those five years to get there.
It seems likely you're gonna have some overlap of jobs in addition to infrastructure.
That's that's gonna that's gonna happen you know basically drive some job -- is there one of these names and whether that includes WPP that you like better than.
All the group.
-- feel like the best right now because -- you've got a hole on neutral on on the comic con right.
I -- like I PG Interpublic Group the best WPP buys them but sir Barton dodged the question when Dennis mile he asks he ceased to shrewd.
Executive to engage in negotiations and public opera I'd be easier anything -- you think he has talking to them.
I'm sure he sees them socially and apparently social social engagements can lead to the big things are at least.
That's what I'm -- -- -- in the end you've got to look at regulatory hurdles does this deal passed.
I think overall yes it well obviously the investor AM that is regulators are gonna look at certain pressure points.
I think what.
Potentially the market share in the media business in the United States is probably one of the areas which -- global more closely at.
Him there could be other odd things throughout the globe these are obviously large global enterprises but that's one that comes to top of mind.
James Dix says he's collecting Interpublic Group right now we'll watch it thank you very much all right thanks -- -- to have you James Dix is what -- securities senior research analyst at close.
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