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
This article was first published on campaignlive.co.uk