Print Published in 2002

Ominous odours at Omnicom

When our sister newsletter New Media Agencies Financial Intelligence published the first extensive exposition of how Omnicom had offloaded its loss-making internet investments, it seemed like a skillful piece of financial engineering. But when the Wall Street Journal took up the story, Omnicom’s shares fell by 30% in two days. Should we be worried?

What may have been initiated as a well-intentioned attempt to achieve the best result for shareholders seems to have backfired in a massive way. Instead of winning shareholders’ congratulations, confidence in the company has been badly undermined and lawsuits have begun.

So was it just a sad, but simple, case of poor communication? Or has Omnicom been deliberately massaging its figures?  The full story is available free to subscribers only, by following the instructions below.