Vivendi buys Havas
It is official: Vivendi, a French media conglomerate with assets across the globe, has indicated that it is now bidding for Bollore’s Group 60% stake in Havas, an agency holding group.
The mega- Europe merger, valued at US$2.56 billion, will impact agencies’ and media assets across the world.
If approved, Vivendi becomes a vertically integrated media and ad giant, while having the ability to use data analytics, explore new ad formats and take advantage of consumer science.
Meanwhile, Havas will gain from Vivendi’s talent in content creation and media distribution.
The marriage responds to calls for similar consolidation and scalability.
It brings together a large group of agencies, gaming and broadcasting networks, music labels and digital assets under one roof.
For CMOs, the deal offers scalability, but it still depends on whether a one-stop marketing destination brings key advantages and not conflicts of interest.
Many of the assets, like Dailymotion, have similar favorite competitors, like YouTube.
Clients may not want to choose a single brand for all their marketing needs and risk sacrificing reach and impressions for the sake of total control.
There are also the issues of current contracts and whether there may be conflicts of interest.
For example, global CMOs may not want to their Havas agencies to sacrifice global reach for the sake of better scalability with Vivendi’s French connections.