Omnicom and Carat bid to take control of MGM

Conflict between advertising giants Omnicom and Carat intensified this week as it emerged both were bidding for control of UK media specialist Manning Gottlieb Media.

The rival organisations – which ironically are both minority shareholders in MGM – are understood to be in talks with founding partners Colin Gottlieb and Nick Manning to buy their controlling stake in the independent agency.

A fierce battle between the two groups is already expected for the 200m billings of Eurospace, the Carat-owned media-buying operation used by TBWA clients. Last week, TBWA announced it would not be renewing its contract with Eurospace, signalling Omnicom’s intentions to bundle its global media buying (MW July 3).

Sources suggest the purchase of MGM could act as a catalyst, allowing for Omnicom to consolidate its media buying. But Carat maintains it will keep its Eurospace clients, and this week claimed brewing giant Miller had pledged to stay loyal.

Any consolidation of Omnicom’s structure would have to overcome potential client conflicts in the networks, particularly in the car sector. TBWA handles Nissan, New PHD has Volvo and DDB holds Volkswagen.

Carat’s reasons for wanting to buy MGM, apart from putting a brake on Omnicom’s plans, are unclear. Carat refuses to comment.

Carat owns 19 per cent of MGM, while Omnicom’s network TBWA owns 32 per cent, which it acquired when it bought Simons Palmer Clemmow Johnson. Gottlieb and Manning own 49 per cent.

One industry observer says: “Both parties must know roughly what the other has offered because both are shareholders in MGM. It is like a game of poker where everyone knows everyone else’s hand.”

Cover Story, page 32

Recommended

Victoria Wine begins to test home shopping wine service

Marketing Week

Victoria Wine, the national off-licence chain thought to have been put up for sale by owners Allied Domecq, is testing its first home shopping service for wine. Victoria Wine Cellars Direct is being tested in the West Midlands, with plans for a national roll-out next year. The company has bought a database containing the names […]

Comments

    Leave a comment

    Close

    Discover even more as a subscriber

    This article is available for subscribers only.

    Sign up now for your access-all-areas pass.

    If you're an existing paid print subscriber find out how to get access here.

    Subscribers enjoy unlimited access to unrivalled coverage of the biggest issues in marketing, alongside practical advice from the digital experts at Econsultancy.

    With a subscription to Marketing Week Premium you will get full access to:

    > World-renowned columnists

    > Analysis & case studies

    > Exclusive leading-edge insight

    > Carefully curated reports & briefings from Econsultancy

    > Plus, much more including a £300 discount for the Festival of Marketing

    Subscribe now

    Got a question?

    Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

    If you are looking for our Jobs site, please click here

    Subscribers enjoy unlimited access to unrivalled coverage of the biggest issues in marketing, alongside practical advice from the digital experts at Econsultancy.

    With a subscription to Marketing Week Premium you will get full access to:

    > World-renowned columnists

    > Analysis & case studies

    > Exclusive leading-edge insight

    > Carefully curated reports & briefings from Econsultancy

    > Plus, much more including a £300 discount for the Festival of Marketing

    Subscribe now