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P&G Gillette deal hits media owners.(Procter & Gamble Co. aquires Gillette Co.)(Brief Article)
As well as providing a likely windfall for Publicis Groupe's Starcom MediaVest, Procter & Gamble's dollars 57 billion acquisition of Gillette is likely to further squeeze the margins of media owners.
P&G's media business is split between Starcom Group, which handles the bulk of the account, and Grey's MediaCom in the UK, while Starcom and Aegis' Carat share the business in the US. Gillette is globally aligned to MindShare but the WPP-owned network recently won the European media account for P&G's rival FMCG company Unilever.
It is likely, therefore, that P&G will shift the business out of MindShare and into Starcom if the deal is ratified, although WPP agency sources are optimistic that the company's new relationship, via MediaCom, might provide something of a lifeline.
In the UK, negotiations for the pounds 22 million Gillette media ...
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