Media giant Paramount ends a two-decade-long partnership with WPP, opting for a new strategic direction
Paramount Parts Ways with Long-Time Media Agency WPP, Shifts Business to Publicis
In a shocking twist, Hollywood heavyweight Paramount has severed ties with its media agency of record, WPP Media, after over two decades of collaboration. The news was first broken by Deadline.
The entertainment powerhouse is now handed over to Publicis for their media business management. This move isn't the result of a regular agency review and seems to have caught many in the industry off guard, Deadline reports.
Paramount, WPP, and Publicis opted to remain tight-lipped on the matter.
This decision comes amid Paramount's plans to merge with Skydance Media, a move announced last July. David Ellison, Skydance Media's founder and son of Oracle co-founder Larry Ellison, is set to lead the merged company as chairman and CEO.
The merger has garnered regulatory approvals from the U.S. Securities and Exchange Commission and the European Commission. However, uncertainty persists due to lingering FCC approval and an ongoing lawsuit by Donald Trump against Paramount's CBS. These factors cast a dampener on the deal's timeline and final outcome.
As Paramount waits for the remaining approvals for its merger, it seems to be focused on cost-cutting measures. Company insiders suggest that the shift in media management is a part of these cost-saving efforts, Deadline states.
Going back to 2004, Paramount has been working with WPP's media arm. WPP was originally called Mediaedge:cia. Their relationship deepened over the years with WPP taking over Paramount's media planning and buying business. This collaboration continued even after Mediaedge:cia rebranded as MEC in 2010 and merged with Maxus to form Wavemaker in 2017. In 2021, Wavemaker was appointed as the media agency for Paramount-owned ViacomCBS.
In May, WPP consolidated its media investment operations under the new brand WPP Media, phasing out the GroupM name.
Rising to the Top and Staying There: Publicis Groupe's Dominance Strategy
Interestingly, Publicis has managed to secure Paramount's media business just as it is preparing for a major corporate transformation. Could this be a strategic move on Publicis' part or pure coincidence? Only time will tell.
In the midst of its planned merger with Skydance Media, Paramount chose Publicis over WPP for their media business management, a move perhaps linked to cost-cutting measures amid uncertainties in regulatory approvals. This decision comes as Publicis rises to the top with a dominant strategy, severing ties with long-time partner WPP just as it prepares for its own corporate transformation.
