NEWS: Abbott Mead in talks with CIA over IDK purchase

By CLAIRE BEALE, campaignlive.co.uk, Friday, 16 August 1996 12:00AM

The Abbott Mead Vickers group is understood to be in preliminary negotiations with the CIA Group over the acquisition of the media independent, IDK Media.

The Abbott Mead Vickers group is understood to be in preliminary

negotiations with the CIA Group over the acquisition of the media

independent, IDK Media.



AMV is said to be interested in snapping up the pounds 75 million-

billing company to augment its recently launched media operation, New

PHD. IDK is jointly owned by CIA and its managing director, Tony Kenyon,

who hold a 75 per cent and 25 per cent stake, respectively.



IDK would increase New PHD’s buying muscle and provide it with much-

needed TV negotiating skills. Kenyon and his team have carved out a

reputation for being some of the best TV buyers in the business.



There are clear synergies between IDK and AMV. IDK has the more than

pounds 40 million TV buying account for BT, while AMV handles its

creative work. They also work together on PepsiCo’s Pizza Hut business.

However, there would be a clash between New PHD’s Guardian Media Group

account and IDK’s Express Newspapers business.



AMV and CIA are understood to be discussing a price for IDK, which some

sources have valued as high as pounds 22 million on the back of annual

profits of around pounds 1 million.



However, IDK’s long-term prospects for growth have been questioned by

some observers. It has a static new-business record and a one-

dimensional reputation for TV buying in a market that is moving towards

a more strategic approach to media.



Michael Baulk, the chief executive of AMV, said: ‘We do not comment on

market speculation.’



This article was first published on campaignlive.co.uk

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