Omnicom Acquisition of IPG Confirmed; TikTok Requests Emergency Injunction Against US Ban; CMA Investigating Outbrain and Teads Merger

News in brief: Omnicom Acquisition of IPG Confirmed; TikTok Loses Appeal Against US Ban; CMA Investigating Outbrain and Teads Merger 

Omnicom Acquisition of IPG Confirmed

Following news that Omnicom was in advanced talks to buy Interpublic Group (IPG), the deal has now been confirmed with both boards of directors unanimously approving the acquisition. Both groups will merge to become a single marketing and sales entity, which is set to achieve a net revenue of over USD$20bn (£15.65bn). IPG shareholders will receive 0.344 Omnicom shares for each share of IPG common stock they own; Omnicom shareholders will own 60.6% of the combined company and Interpublic shareholders will own 39.4%, on a fully diluted basis, explains Omnicom’s press release.

TikTok Loses Appeal Against US Ban

Focusing in on the US, TikTok’s attempt to overturn the law which will see it banned in the country – if not divested from Chinese-owned parent company ByteDance – has been rejected. The video giant had argued that the US' security concerns were unfounded and that the ban would infringe on US citizens’ right to freedom of speech. The Court upheld the law, however, saying it "was the culmination of extensive, bipartisan action by the Congress and by successive presidents", according to the BBC. In response, TikTok outlined its intention to take the case to the US Supreme Court. It has also requested an emergency injunction from the court, which would stop it becoming unavailable in the US next month. This legal request would temporarily block the law in order to give the Supreme Court more time to consider the matter. The DOJ has called for the request to be dismissed. TikTok stands firm in its favour, however, arguing that it's justified with a change of presidency about to take place. Trump, who will soon take office on 20th January 2025, has previously indicated that he would overturn the law (despite having signed an order seeking to ban it during his first term).

CMA Investigating Outbrain and Teads Merger 

In the UK, Outbrain’s anticipated acquisition of Teads is being investigated by the Competition and Markets Authority (CMA). An inquiry into the merger was launched on 6th December and both parties were given notice of the investigation. The CMA’s decision wrapping up the first phase of the inquiry is expected by 5th February 2025.