IPG rejects MullenLowe buyout offer; R/GA sale talks continue

Advertising giant Interpublic Group (IPG) reportedly shot down an unsolicited offer to buy its global agency network MullenLowe. This comes as IPG negotiates the potential sale of its digital marketing agency, R/GA, to Tata Consultancy Services (TCS).

IPG reportedly deemed the MullenLowe offer "not credible" and hasn't engaged with the potential buyer, identified by some sources as possibly being from Eastern Europe, with Dmitry Korobkov, former head of a Russian agency network, a possibility. IPG considers MullenLowe a valuable asset.

Meanwhile, IPG's talks to sell R/GA to TCS are ongoing but face potential hurdles due to valuation disagreements. R/GA, valued around $300 million, has reportedly seen a decline in revenue (down 20% to $200 million last year) and experienced executive departures and client losses. Selling R/GA could help IPG streamline its operations.

Despite its recent struggles, R/GA boasts an impressive client list including Verizon, Google's Android, Samsung, and Coca-Cola. IPG acquired R/GA in 2001 through its purchase of R/GA's parent company. IPG itself ranks as the world's fourth-largest advertising holding company by revenue.