Havas to invest over $400 million in AI as parent company considers spinoff

Havas will invest 400 million euros, or more than $428 million, into AI over the next four years, Chairman-CEO Yannick Bolloré announced today during a press conference at the Cannes Lions Festival of Creativity. The announcement comes as Havas’ parent company Vivendi contemplates a potential spinoff of some of its assets, including Havas. The decision is expected by next year, Bolloré confirmed. Also read: Havas to help brands with Ozempic, weight loss strategies A potential spinoff of Havas could also open it up to mergers and acquisitions discussions. The industry has been swirling with rumors that one of the big six holding companies could make a major acquisition over the next few years. But as of now, Havas hasn’t had any conversations with other holding companies, Bolloré told Ad Age. There would be “pros and cons” to going public, Bolloré said. “Yes, we will have more pressure from the markets but it will also give us the financial means to develop Havas.” Havas could be valued at 3 billion euros ($3.2 billion) if split off from Vivendi, Bloomberg reported in December. The French conglomerate acquired a majority stake in Havas for $2.5 billion in 2017. Also read: Agency acquisitions are heating up Cannes Lions coverage See all of the Grand Prix winners here Top 5 Grand Prix campaigns In addition to the AI investment, Havas announced a new operating system at Cannes called Converged. The system will more closely integrate Havas data and tech capabilities with the rest of its capabilities, according to a press release, and “be available across all Havas networks and areas of expertise and enhanced beyond its current media focus,” according to a press release. Havas has already invested more than 600 million euros ($642 million) into tech and data over the last 10 years, Bolloré said during the presentation. “The big difference today is that we will have a common operating system that will be used,” Bolloré said. “The industry is changing and clients’ needs are evolving. We need to be the best in everything … but [clients] want us to harness the full power of technology.” Most of those clients are exploring ways to work in a more integrated way with their agencies, he added. Havas is just the latest agency company to invest in AI. Earlier this year, WPP announced it would invest $318 million in AI annually, while Publicis said it would invest $326 million in AI over the next three years.

Havas to invest over $400 million in AI as parent company considers spinoff

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