Omnicom-IPG merger may fold DDB into TBWA

New Delhi: Omnicom Group is preparing to retire one of advertising’s most iconic names, DDB (Doyle Dane Bernbach), as it moves to close its $13 billion acquisition of Interpublic Group (IPG), as per news reports. 

The deal, which is expected to be completed by the end of November, subject to final EU approval, will create the world’s largest advertising holding company and kick off one of the biggest restructurings Madison Avenue has ever seen.

As per news reports, BBDO will continue as a standalone global network. DDB, however, is expected to merge with TBWA and operate as a combined entity. 

On the IPG side, McCann is expected to retain its identity, while MullenLowe will reportedly be paired with FCB. 

A separate conflict shop is also expected to be set up to manage competitive account separations.

According to sources, the plan is not to delete the DDB brand everywhere overnight. The reported structure is that DDB and TBWA will be run more as a single network globally as part of holding company simplification, with shared leadership and shared resources. 

In practice, DDB may continue to exist in select markets and for legacy client relationships, even if it no longer sits on its own as one of Omnicom’s headline global networks. In other words: not fully dead, but no longer sovereign.

DDB was founded in 1949 by Ned Doyle, Maxwell Dane and Bill Bernbach. 

The Indian context: DDB Mudra

In India, DDB has a distinct and politically important history.

Mudra Communications was founded in 1980 by AG Krishnamurthy, initially to handle Reliance Industries’ advertising. In 2011, Omnicom’s DDB Worldwide acquired Mudra Group and the agency was rebranded as DDB Mudra Group. 

That marriage gave Omnicom deep, on-the-ground credibility in India and gave Mudra global backing, global clients and process. 

Any global decision to merge DDB and TBWA into a combined network will inevitably raise questions about how that plays out in India. 

Does DDB Mudra continue to operate under that name because of its legacy and client base? 

Does it get aligned under a new combined banner? Or does the brand live on locally even if it is no longer recognised as an independent global P&L? None of that is clear yet.

What is clear is that these aren’t just cosmetic decisions. They affect local leadership identities, client comfort and talent retention.

Consolidation logic and cost pressure

The reported restructuring is part of a bigger financial story.

Omnicom and IPG together are expected to generate more than $25 billion in annual revenue once the deal closes, instantly creating the biggest advertising holding company in the world by top line. 

Omnicom has told investors it is targeting roughly $750 million in annual cost savings within two years. Most of that is expected to come from integration, back-office consolidation, overlapping agency capabilities and a smaller leadership layer across creative, media, production and data.

Omnicom CEO John Wren has pitched the transaction in bullish terms. On the company’s third-quarter call, he said, “Together (with IPG), we will emerge with the industry’s most talented team and a powerful platform designed to accelerate growth through strategic advantages in data, media, creativity, production, and technology.” 

Omnicom shed roughly 3,000 jobs in 2024 and has been pushing to take out around 10% of staff costs, according to people familiar with the matter. IPG reduced its own headcount by about 2,400 people in the first half of this year. People inside both companies say they expect more reductions as integration moves forward.

The Omnicom–IPG merger was first revealed late last year and is now in the final stages. The deal has already cleared the US Federal Trade Commission and the UK’s Competition and Markets Authority. The last major sign-off is from the European Commission, which has been formally notified and is reviewing the transaction on a deadline that runs through late November. Omnicom has told investors and staff that it expects to close within days of EU approval.