International business of Dentsu is being actively seeked for a potential buyer.
In the ever-evolving landscape of the global advertising industry, Dentsu, a prominent Japanese advertising holding company, finds itself at a crossroads. According to a report by the Financial Times, the company is currently considering selling parts of its business.
This development comes after Dentsu announced a 0.2 percent decline in organic revenue for the first half of 2025 and reduced the growth forecast for the year to 1 percent. The company's international business is undergoing a reassessment, with underperforming areas being targeted for improvement to boost competitiveness.
The leadership at Dentsu has seen changes as well. Wendy Clark, the global CEO of Dentsu, stepped down in 2022. Hiroshi Igarashi, Dentsu's CEO, expressed openness to selling or merging the international business with another company during an analyst conference in early August 2025.
In Germany, Dentsu is represented on the market through the media agency Carat, the CRM and digital subsidiary Merkle, and the creative agency RCKT. The company made a significant move in 2020 by acquiring the US-based digital marketing consultancy Merkle and dropping the Aegis name.
The potential buyers for Dentsu's parts are varied. Accenture Song, holding companies, large independent companies, or private equity firms are all possibilities. However, IPG and Omnicom, who are currently focused on their own merger, are not potential buyers.
Brian Wieser, principal at the consulting firm Madison and Wall, noted that Dentsu's ownership of the international business is unusual because it is completely separate from the domestic business. He also pointed out that the leadership in Japan at Dentsu has not been as well connected with the rest of the industry.
In a 2023 interview, Igarashi did not rule out a merger, but also stated that a sale did not align with his thinking at that time. The company has since hired Katja Brand as its new CEO in Germany, who will start her job next week.
This article was first published in "Campaign UK" and adapted and supplemented with country-specific information from "Campaign Germany" for the German market. As Dentsu navigates this significant period of change, the industry watches with anticipation to see how the company will shape its future.
