IPG’s Krakowsky & Omnicom’s Wren offer an inside look at the merger of the century

Now, alongside Philippe Krakowsky, CEO of Interpublic Group (IPG), Wren is attempting another mega-merger – one that promises to transform the advertising industry and form the world’s largest holding company.

But this isn’t a replay of 2014. Both men are confident they’ve learned valuable lessons that will inform their approach. And they’re determined to show the world that this time will be different.

Redefining the network model

At the core of Wren’s and Krakowsky’s strategy is a bold reimagining of the holding company model.

While rival WPP has consolidated its agencies into mega-brands and Publicis has centralized operations, Wren and Krakowsky are focused on creating what they call ‘networked independence.’

The approach involves consolidating back-end operations – finance, IT and HR – all while maintaining creative independence in key markets where their brands have cultural or business significance.

“Our agencies are unique for a reason,” Wren tells The Drum. “This isn’t about flattening everything – it’s about optimizing and giving them tools and resources to do what they do best.”

The strategy will have practical benefits, too, Wren suggests. “If you’re trying to force every agency into the same mold, you’re ignoring how clients work today. They want bespoke, nimble solutions, not cookie-cutter answers.”

For Krakowsky, who has occupied the top post at IPG for four years, believes that keeping a level, realistic perspective will be key in executing the merger effectively. “We’re very honest with ourselves and with clients about where we are strong and where we would like to be stronger,” he says.

And he’s optimistic about the potential ahead. “This merger allows us to unlock those complementary strengths and deliver better results.”

Regulatory hurdles: ’A marathon, not a sprint’

The merger faces potential scrutiny from regulators in 17 jurisdictions, including the US, EU and UK – and the process will take time.

“This is something of a marathon,” Wren says. “We’ve been down this road before and we’re prepared to respect the process.”

Krakowsky sees the interim moment as an opportunity. “The waiting period gives us a grace period to plan properly,” he says. “It’s an opportunity to think carefully about integration and ensure we’re ready to act when the time comes.”

And both CEOs reject the notion that the merger constitutes anti-competitive behavior.“If you’re worried about us having too much influence, just look at the ecosystem,” Wren says. “We’re competing against trillion-dollar companies like Google and Amazon. This deal doesn’t tip the scales – it levels the playing field.”

Mitigating staff concerns and client conflicts

For Wren and Krakowsky, maintaining morale during the merger is critical.

But they may have their work cut out for them. The business aims to land $750m in efficiency savings if it goes through. Much of that number will be derived from savings on corporate and logistical redundancies and plans to centralize back-office functions as opposed to client-facing roles.

However, some analysts have estimated that up to 10,000 jobs may be cut.

Wren rejects the idea that many jobs are at risk. “If you’re servicing a client or generating revenue,“ he says, “your job is safer the day we announced the deal than it was the day before. The efficiencies we’re talking about are overhead – not client-facing roles.”

Krakowsky, meanwhile, insists that clients and partners are plugged into any planned changes. “We’ve been transparent with clients and teams about how this will work,” he explains. “The feedback so far has been overwhelmingly positive because they can see the benefits.”

On the subject of potential client conflicts, both CEOs stress that firewalls and confidentiality rules will remain robust. “We’ve handled competitive accounts before, and this merger won’t change that,” Krakowsky says. “Clients trust us to safeguard their interests, and we take that responsibility seriously.”

Tech-enabled transformation

One of the merger’s most transformative aspects is expected to be the integration of IPG’s Acxiom data capabilities with Omnicom’s Omni platform, an operating system designed to enable agencies to collaborate on client work.

“Omni has been in development for 12 years,” Wren says. “It’s a platform built to be robust, and integrating Acxiom’s gold-standard data makes it an even stronger tool for modern marketing.”

The e-commerce platform Flywheel Digital, which Omnicom acquired last year for about $835m, will also be a key part of the mix.

Krakowsky sees it as a unique advantage. “Nobody will have as comprehensive a solution as we will,” he says. “We’re creating a seamless ecosystem where data, technology and creativity come together to deliver measurable growth for clients.”

Learning from the past

Wren’s experience with the Publicis merger has shaped his approach to this deal.

“Last time, Publicis let everybody participate in the planning. It created confusion,” he recalls. “I kept it to a small group then, and we’re doing the same now to ensure focus on clients.”

This disciplined approach, Wren hopes, will also aid in maintaining momentum during the regulatory review period.

“The key is making sure that client-facing teams stay focused on their day-to-day roles,” Wren says. “Integration is a job for a small, centralized team – not something that distracts everyone else.”

He’s committed to avoiding some of the pitfalls that befell the would-be Publicis merger – such as the decision to create a co-CEO structure.

“If anybody proved that co-anything is a fallacy, I did 10 years ago,” he says. “I was going to be co-CEO with Maurice Lévy and it took nine months to prove it didn’t work.”

This time, there’s no such ambiguity. “There can only be one chief,” he adds firmly. By steering clear of the risk of dual leadership and streamlining decision-making at the top, Wren and Krakowsky believe they can deliver a merger that is focused, cohesive and free from the distractions that plagued the previous attempt.

The long game

For Wren, this merger represents more than just a business decision. It’s a chance to leave a lasting legacy.

“I could’ve written the press release for my retirement and coasted,” Wren says. “But I feel a responsibility to leave Omnicom in a future-proof state.”

Krakowsky agrees. “When you’re in a role like ours, it’s not about what’s easy. It’s about what’s right. This merger isn’t just about scale – it’s about building a model that’s truly fit for the future.”

Of course, this conviction won’t silence all the merger’s critics, but Wren has fire in his belly. “Let them talk. We’ve got the plan, the tools and the people to make this merger work – and we’re not wasting time.”