Paramount has closed the doors on its two-decades long media partnership with WPP Media (previously WPP) in a bid to save on costs.
The end of the relationship between the advertising agency group and media conglomerate comes as production company Skydance and private equity firm RedBird Capital are set to take over Paramount, as reported by Deadline.
The publication noted that the media partnership was under review and that the termination was a ‘business decision’ that resulted in ‘significant cost savings’, and that Paramount executives selectively informed staffers of the news last week.
The Skydance and RedBird Capital deal, worth $8 billion, hinges on US government approval. The publication also reported that Publicis Groupe was appointed as WPP Media’s replacement.
Mediaweek has contacted WPP Media and Publicis Groupe for comment. Paramount declined to comment.
The Skydance and Paramount deal, announced last year, has encountered hurdles as a result of President Donald Trump’s lawsuit against CBS News, a subsidiary of Paramount.
Changes at WPP Media
Last month, WPP has officially replaced GroupM with WPP Media as the name of the global media company to reflect its position as a fully integrated, AI-powered media company.
WPP Media manages more than US$60 billion in annual media investment and works with more than 75% of the world’s leading advertisers in over 80 markets. Mindshare, Wavemaker and EssenceMediacom will continue to provide clients with dedicated teams as brands within the holding company, leveraging common capabilities, technology and support functions.
“Consumers already expect advertising to be relevant and engaging and buying experiences to be seamless; those expectations are only going to accelerate in the age of AI,” Brian Lesser, CEO of WPP Media, said.
“WPP Media is built for a world in which media is everywhere and in everything. By investing in our AI-powered product, integrating our offer with data and technology, and equipping our people with future-facing skills, we’re helping our clients to stay ahead of rapidly changing consumer behavior and unlock the limitless opportunities for growth that AI will create.”