One of the things I find intriguing about the merger of Draft and FCB is how naive the so called “Financial community” can be about the whole thing. According to analyst Debra Schwartz, she applauds the merger. "We believe the key to the story is IPG's ability to return to growth, and initiatives like this give us confidence it is making progress," Ms. Schwartz, a research analyst at Credit Suisse, wrote in a report yesterday. What I would like to know is what possible reason she has for making this ludicrous statement? IPG has been losing money and restating its results for FOUR years. Merging Draft and FCB is not a silver bullet. Michael Roth, the idiot Chairman of Interpublic thinks that Draft with it’s snout in the “New Media” trough will help pull the FCB Valdez away from the rocks… Too late baby, that behemoth is already springing leaks… Witness this from Friday’s New York Times… “Details of how the Draft FCB Group will be run and who will lead important departments are expected to be disclosed in three months, after committees of employees from both agencies spend the summer working on organizational, management and personnel issues.” Good luck guys, that’ll be harder than trying to form a government of national unity in Iraq!
Required reading for anyone investing in Interpublic stock!
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