News in brief: Huge Agency Merger on the Horizon? Go Ahead Given for The Observer Sale; Channel Factory Seeks Backer; Perplexity Adds Publishers to Ad Revenue Program 

Omnicom to buy IPG?

Huge agency news broke on Sunday evening, as Omnicom is reportedly in advanced talks to acquire Interpublic Group (IPG) in a deal which would create the world’s latest advertising group. The Wall Street Journal, quoting people familiar with the matter, said a deal between the two US-based companies could be announced as early as this week.

Observer Sale Given Go Ahead

Next, the Scott Trust – owner of Guardian Media Group – has given the go-ahead for The Observer to be sold to Tortoise Media. The media company reached this decision at a board meeting on Thursday; Scott Trust intends to take a minority stake in the new merged company. The deal is expected to be completed within the coming days. A large number of staff at The Guardian completed a two-day strike last week in protest of the sale. They are reportedly in discussion about leading another strike this week. Many of the journalists who will be leaving behind The Observer for the new combined newsroom reportedly fear for their job security, as well as being concerned about who is funding the deal and editorial independence, according to Press Gazette. 

Channel Factory Seeks Backer

Also in the M&A ambit, Channel Factory is understood to be holding talks with potential new backers. The company has appointed financial firm Canaccord Genuity to solicit further investment, three separate sources have told Digiday. There is reportedly interest from both private equity and strategic players. Currently, Channel Factory’s valuation is understood to be between USD$300m – $400m (£235m – £314m). 

Perplexity Adds Publishers to Ad Revenue Program 

Looking at the latest between publishers and AI giants, Perplexity is adding several publications to its publishers’ program which sees them receive a portion of revenue from ads. Over a dozen new media partners are being added, including The Independent and the Los Angeles Times. Meanwhile, Perplexity faces a slew of lawsuits from other publishers accusing the company of infringing on their copyrights for the purpose of training AI models.