Three Japanese agencies team up

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[tokyo] To better compete with Japanese ad giant Dentsu, No. 2 agency Hakuhodo and two other Japanese agencies-No. 4 Daiko and No. 8 Yomiko-announced plans to form their own joint holding company in fall 2003 and seek a stock exchange listing in Tokyo "at the earliest possible timing." The three agencies already formed a joint media-buying and planning venture in October 2001. Rival Dentsu controls almost half of all media sales in Japan. The three ad agencies and the new media agency will continue to operate separately as 100% owned subsidiaries under the new, unnamed holding company and it is unclear how they plan to reach their goal of integrating business operations. In other alliances, Interpublic Group of Cos. owns an 18% stake in Daiko, and Yomiko owns a joint company in Japan with Publicis Groupe and Cordiant Communications Group. In Japan, Dentsu had 2001 gross income of $1.8 billion; the combined Hakuhodo, Daiko and Yomiko holding company would total $1.2 billion, according to Ad Age figures.
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