After more than a year of (often strained) negotiations between Publicis Groupe and Cordiant Communications, a compromise formula has finally evolved to secure the future of jointly-owned Zenith Media.
The two global networks will today announce the creation of a London-based holding company – as yet unnamed – to house Zenith along with Publicis’ media unit Optimedia. Both brands will, however, continue to trade worldwide as separate entities.
Insiders say that the new holding company will number among the globe’s largest media shops, its combined billings of $7.6 billion vaulting it into world number five ranking.
Zenith has an unsettled history. Formerly the inhouse media shop of Saatchi & Saatchi in its glory days before the acrimonious exit of the brothers Saatchi, Zenith was split into an equally-owned property when Cordiant was spun-off as a separately quoted operation from the Saatchi & Saatchi group. When the latter was acquired last year by Publicis, fifty per cent of Zenith was included in the deal.
News is expected today as to who will be at the helm of the new entity in which Publicis is expected to hold the controlling stake.
News source: Advertising Age - Daily Deadline