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Tuesday, May 17, 2011

Publicis buys Rosetta in U.S. to boost digital unit, (PUBP)

Publicis (PUBP.PA), the world's No.3 advertising group, is to purchase U.S.-based Rosetta Marketing Group for an initial $575 million, to boost its digital and interactive offerings. The French company's acquisition -- its third U.S. digital advertising deal in recent years -- comes as the growing popularity of internet video and social media is boosting web display advertising, while traditional advertising in newspapers and magazines is slowing. "The transformation of the advertising market will be colossal," Chief Executive Maurice Levy said in a conference call on Tuesday, adding that Publicis wants to accelerate its move toward digital, which is seeing double-digit sales growth. On top of the initial transaction value, Rosetta's manager-shareholders could receive a fee in 2014, based on the agency's performance between 2011 and 2013, Publicis said. A Publicis spokeswoman declined to disclose the share ownership of Rosetta.