Merge. Spin Off. Merge. Spin Off.

Troubled Chicago conglomerate Draft FCB is planning to open up “an offshoot that would, if all goes according to plan, become a separate, independent full-service shop that would be part of the same parent holding company, IPG,” according to Lewis Lazare of Chicago Sun Times.
Lazare says the new agency is being created to handle accounts that present problematic conflicts of interest resulting from the merger of Draft and Foote Cone & Belding, specifically the giant drug chain CVS and telecom’s Qwest.
The new shop also is expected to incorporate all — or aspects of — other IPG assets, including direct marketing shop Zipatoni, a promotional marketing and advertising shop.

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About David Burn

Native Nebraskan seeking the perfect pale ale in the Pacific Northwest. Disc golfer. Fan of Kurt Vonnegut, community radio and wolves in the wild. Copywriter and brand strategist at Bonehook. Co-founder and editor of AdPulp.

  • http://multicultclassics.blogspot.com HighJive

    Howard Draft has always been a wizard at having his Nobu sushi and eating it too; that is, the shop has traditionally managed to service competing accounts. Hey, more power to him. Although he no longer has to worry about conflicts with Wal-Mart. Ouch.

  • theo kie

    Back in the late 90s when Interpublic Group bought FCB, there was much talk of how agency management had found ways to avoid conflicts. Several months later, Pepsico disagreed and pulled $300+ million in Quaker Oats business. It will be interesting to see whether this approach is more successful in blunting such concerns.

  • http://www.adpulp.com Shawn

    @theo kie
    wouldn’t you mean when TrueNorth bought FCB? IPG bought TrueNorth in 2002.

  • theo kie

    My mistake. I meant when IPG bought True North….which, for all intents and purposes, meant buying FCB. Details, details, details….