"In its second-quarter earnings statement, Dentsu's CEO Hiroshi Igarashi declared his intent to find a buyer for all the holdco's assets outside of Japan, which is its own fiefdom and has always been kept separate from the rest of Dentsu. Hiring Morgan Stanley and Nomura Securities, it translates to putting the former holdco Aegis holdings up for sale. Igarashi-san told analysts on Dentsu's latest earnings call that "[the] international business continues to face negative growth across all regions, resulting in a challenging overall performance.""
"While WPP's woes, Publicis' growth, Havas' public spinoff from parent Vivendi and the IPG-Omnicom merger have each hogged headlines, Dentsu's underperforming international businesses have flown under the radar in recent years. Along the way, they picked up businesses that have value in today's marketplace, namely Merkle, which Dentsu bought back in 2018. And regionally, some of Dentsu's media agencies have performed well, including Carat and iProspect (less so Dentsu X, which just lost its U.S. CEO Leah Meranus to Publicis)."
Cindy Rose assumes leadership at WPP as Dentsu moves to exit the global holding-company race by selling assets outside Japan. Dentsu CEO Hiroshi Igarashi hired Morgan Stanley and Nomura Securities to market former Aegis holdings. The international business has experienced negative growth across regions, prompting the sale decision. Assets for sale include data and technology businesses like Merkle and regional media agencies such as Carat and iProspect, while Dentsu X has underperformed. The transaction could shift competitive balance among major holding companies amid other industry moves including mergers and spinoffs.
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