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That's okay well this was the big news as we woke up this morning the French ad company publicists and the American ad agency on -- come have announced their intention.
To merge into this huge 35 billion dollar company with over a 130000.
So how to they pull it off and what will it mean for the business world.
We are so happy to have miles Nadal he's MDC partners CEO that's the -- largest advertising holding company in the world.
Okay did did sir Martin Sorrell -- -- call you I mean that we're wondering whose -- So we're now seventh as a result of this Saturday's strategist at play around long enough you'll you'll go give -- up.
Look this this surprised everyone.
Not that consolidation wasn't expected it was expected this combination of number two and number three though was a -- an unexpected combination.
It's a great move for them and their shareholders.
It's a zero premium merger.
And they expect 500 million dollars a synergy so that's five billion dollars of economic value to be split between the publicity shareholders and on the -- but does -- make you wanna get -- on that the -- action and become -- -- -- well actually it if we'd been a huge beneficiary of it -- for during the -- our own stock was up 5% today said the entire industry actually has benefited.
We see huge organic growth opportunity as a result of this.
Because they'll be client from you know spillover and conflicts and his -- don't really love.
Big mega mergers.
Number two is is a great opportunity to acquire launch partner -- creative talent so we.
And and the third thing is there's going to be very little competition for the Yemeni that we're involved with because now they're just focused on consolidation of their this huge -- it.
Just put in perspective the revenues of 35 billion their billing.
Canada they're they're they're market cap would be 35 Billy Graham is very little is not a -- one or two billion yeah but but they're building bases over a hundred billion you bring up a great point though that rising tide sometimes does lift all boats everybody could benefit from this but.
The difficult let's talk for a moment from an -- guy's perspective.
Our corporate cultures are always default difficult to merge but when those corporations come from to literally different cultures one in France.
One of the United States two countries are very different taste very different styles in the way they approached thing.
How difficult is going to be to merge those corporate cultures I don't think you can and I think that you know all of those the I have this expiration.
All men are created equal some more equal than others someone will be comment -- dominant player -- -- this merger.
We've always believed that all you -- should focus on is what's good for clients.
None of the mega mergers have been -- ever benefited the clients in terms of better work better impact in better financial.
Performance of the hour.
Is saying a firm of your size.
Is better for our big client that maybe they have right now that you can give them better attention.
Well that's what -- won huge -- work hard for him now -- it's like getting a priest you're accidental whenever we have been the beneficiary we've grown 12% compound it is street has grown to look over the last five years so.
We have been I'm very fortunate Steele has never.
Skills -- enemy of innovation and creativity so why.
The because it's very -- there there -- -- -- had a great expression how big can we get before we get bad.
And the reality is the most innovative technologies have been developed by smaller more -- -- -- let's just stop you right there because we're looking now at some of the companies some of -- companies that you deal with some of the companies that -- -- and a market.
And again getting back to that question -- very different cultures very different cultural approaches.
Are we at a point now because we are in a global economy where that's less important than it used to be where.
Where people from different cultures can put out an ad campaign and it will he'll cross cultural.
We'll keep in mind this is a merger really of.
Holding companies not necessarily -- and -- I think the challenge will be when you have duplication.
Who wins out who's this succeeding management group where there is duplication.
They're looking to take 500 million dollars out so.
I think in that regard you have those challenges most of these big but we have focused 90% of our activity in North America.
When Warren Buffett said in 2008 I'm making a -- bet on America I said he's the world's smartest guy I'm gonna make you take your bet on America and that's what we did so them.
Everybody else went to Brazil Russia India and China.
All mergers are difficult.
Merging cultures is exceedingly difficult especially in a service business keep in mind.
Is -- business whose assets go up and down the elevator this is not Gillette.
And Procter & Gamble whose assets don't care who own them.
But in the service business that's that's the sensitivity about culture is is most critical and that's what we -- miles Nadal MDC partners CO great to have you.
Nice to be here wonderful wonderful views -- that's appreciated let us know sir Martin -- -- okay I thought that's a.
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