A few weeks after reports highlighted a possible interest by top holding companies, Publicis and Havas in acquiring a majority stake in the advertising business of Sam Balsara’s independent media agency Group from India, IMPACT Magazine spoke to the Chairman and CEO of Havas on the possibility of an acquisition of Madison World by the global network.
On being asked as to what extent talks have progressed on the Madison acquisition, Yannick Bolloré told IMPACT, “People have been asking me this question for the past 10 years now. It’s not the first time. So, of course, we are looking at every possibility in every market. But as we are a listed company, we cannot comment on rumours.”
While Bolloré steered clear of giving a definitive response, he didn’t exactly deny the development outright either. Highlighting how acquisitions have become an important aspect of Havas’ growth strategy, he said, “Yes, Havas is one of the most acquisitive groups in the industry which has executed anything between 5 to 10 acquisitions every year, for the past 10 years. We have had different transformative acquisitions, including a big one in Europe called FullSIX Group – an independent leader in digital transformation – eight years ago. Then there was another company called Uncommon from the UK, one of the most creative independent agencies; and a consulting service in London called Gate One, which is expanding quite rapidly. And in India, particularly, we have been very acquisitive, which has led to completely transforming the industry. Just to give you some numbers, eight years ago, Havas had just 250 people in India and today we are 2,500 strong. So, we multiplied by 10 in less than 10 years.”
While Havas has had a tradition of not acquiring agency brands, which operate in the exact same space as their existing agencies in India, a solid brand like Madison could well be an exception on the media side of it, which as we see it currently is a competitor to Havas Media. Bolloré was quick to reply, “No, no, I won’t comment on anything”, even as he listed some of the agencies Havas has acquired over the past few years in India, like Pivotroots, an independent digital company; Shobiz, one of the leaders in producing events; a health agency called Sorrento; Think Design – a design agency, PR Pundit, etc. He added, “These acquisitions along with the organic growth of Havas in India has allowed us to reach a very decent scale today in this country.”
Madison World has for decades strongly held the fort against the media muscle of top holding companies in the country. RECMA (Research Company Evaluating Media Agencies) has consistently ranked Madison Media among the top global independent agencies, it took the fourth place in 2023.
Remember in the past too, networks like WPP and Dentsu had shown interest in acquiring parts of Madison business but negotiations allegedly failed because of lack of consensus on valuation. For e.g., as per reports in 2015, Sam Balsara revived discussions to sell a 75 per cent stake in Madison Media and Madison Outdoor. Talks were reportedly held with global advertising networks, including WPP and Dentsu Aegis Media, with WPP outbidding Dentsu. At the time, Madison Media’s revenue stood at approximately Rs 100 crore, with a valuation estimated between Rs 250-300 crore, though Balsara’s asking price exceeded Rs500 crore.
When the acquisition buzz returned a few weeks ago, Madison’s Executive Director, Lara Balsara Vajifdar, told e4m, “We have always been open to partnerships, but only if the terms align with the best interests of our clients, employees, and Madison’s future.”
Remember acquisitions have taken the spotlight ever since Omnicom’s decision to acquire IPG came to light a few months ago. It remains to be seen if the Madison deal takes the route of a full-fledged acquisition by a global network like Havas; or a partnership of sorts – including minority stake investments by the big networks will come into play here.
