Watch CBS News

Why IPG Should Not Merge Deutsch and Lowe

Management at Deutsch should resist with every fiber of their beings a proposed merger of their agency with Lowe. Both are Interpublic shops. According to Mediaweek:

Such a combination would give Deutsch global reach and amplify Lowe's offering in the U.S.
That's the upside, what's the downside? The baggage that Lowe brings. Consider what Lowe actually is: It's not an agency as such, it's more a collection of unrelated acquisitions that were wrapped into a thing called "Lowe." Frank Lowe himself bailed on it years ago, taking the Tesco account with him.

Here's a list of the shops that are either wholly or partly inside Lowe:

  • Ammirati Puris Lintas
  • Marschalk
  • Scali, McCabe, Sloves
  • Goldsmith/Jeffrey
  • Goldberg Moser O'Neill,
  • Bozell
  • The Partnership
Lowe was unprofitable for five years prior to 2006. I would be surprised if it has remained profitable over the last two years.

Deutsch, by contrast, is essentially the exact opposite of Lowe. It grew quickly on its own, from its own organic growth and through new client wins. It isn't a merged entity. It has always been its own brand. It even successfully managed the departure of its founder, Donny Deutsch, who handed the reins to Linda Sawyer et al.

Given that Deutsch has a winning team, why would they want to screw with it?

View CBS News In
CBS News App Open
Chrome Safari Continue