22feet in talks with Omnicom Group for an acquisition deal

27 Dec,2013

By Shephali Bhatt

 

22feet, a digital agency founded by Brijesh Jacob, Deepak Nair, Vineet Gupta and Vinod Moolacherry, is rumoured to be in talks with Omnicom Group (India) for an acquisition deal.

 

Sources with knowledge of the discussions say TribalDDB, the digital unit of DDB Mudra Group, will be dismantled, and 22feet will become the Omnicom Group’s digital unit after the acquisition is complete. (Omnicom is the holding company that owns DDB Mudra.) Both Brijesh Jacob, founder of 22feet, and Madhukar Kamath, Group CEO & MD of DDB Mudra Communications, were unavailable for a comment at the time of filing this report.

 

With a roster that includes Fastrack, Axe and Red Bull, 22feet has been a target for acquisition for a while now. This comes close on the heels of another similar development: the imminent acquisition of the Indian operations of Saatchi & Saatchi by independent agency Law & Kenneth.

 

The common factor among both Tribal DDB and Saatchi & Saatchi is they are established global brands that have not been able to make too much of an impact in the Indian market.

 

In a shift in trend, instead of acquiring key talent, holding companies like Publicis (which owns Saatchi & Saatchi) and Omnicom are considering handing the operations over to homegrown set-ups that have managed to make an impact. If both these deals come through, it is most likely to give a fillip to independent agencies across categories and specialisations.

 

Source:The Economic Times

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