GroupM is the world largest advertising media company in terms of billing. It was formed in 2003 by WPP Group to serve as the parent company of WPP media agencies including Maxus, MEC, MediaCom, and Vocanic. It handles over 32% of the world media billings making it the world largest media investment management operation. Foxymoron was started in 2008 as a summer project between four friends and turned into a digital media and marketing company.
Global media firm GroupM is in talks to acquire Foxymoron for about $30 Million, as it seeks to establish dominant position in India. If the deal becomes successful then it will be the latest buyout transaction in the nascent, but fast growing Indian Digital, social media, and marketing sector. Global Media giant JWT is also scouting for potential acquisitions in the space.
Foxymoron provides an across the board range of services, including, end to end digital services, including design and development and social media services. The potential transaction is part of GroupM strategy to establish an even stronger footprint in the country, where it already has a dominant presence. India’s online advertising market is poised to exceed Rs 3500 crore in revenue in 2015.
Spend on video ads will grow at a compounded annual rate of 56% while contributing 12% to the overall market share of digital advertisements. The principal sources of acceleration in 2015 are China, where GroupM predicts ad growth will get back on track to just fewer than 10%, the US, forecast to pick up to 3.9, the Brazil, the UK, Japan and India. Acquisitions have been an important growth strategy for GroupM, which also acquired Chinese Social media agency Teein last year.