Dentsu is no longer considering a sale of its international business; instead will focus on accelerating its midterm management plan strategy.
People familiar with the company’s thinking say it remains open to working with external partners or divesting selected businesses at a local level, on a case-by-case basis. Details of any potential partnerships were not disclosed, and any moves are expected to depend on ongoing reviews of underperforming markets over the next year.
In addition, Dentsu has also overhauled its global management structure, scrapped several senior leadership roles and created new executive positions ahead of Takeshi Sano’s arrival as global chief executive on March 27.
The market reaction was neutral, Dentsu's shares closed largely unchanged on the Tokyo Stock Exchange at ¥2,952, up just 0.24% on the day.
In a statement issued to Campaign, a spokesperson confirmed: “After careful consideration, at this time, we have decided not to pursue a comprehensive partnership for the International Business that would rely fully on an external partner. Instead, we will accelerate and drive the transformation and growth of our global business while rebuilding our International Business with urgency and pace. We will continue to invest in the International Business, including key markets, capabilities, and expertise that support our clients’ growth and transformation for the future of AI.”
This comes
after months of sale speculation for the underperforming international business.
In January, Campaign reported that Dentsu’s shares fell 11%
as reports of selling the international unit were close to collapse after prospective
suitors from rival agency groups and PE firm Apollo dropped out of the equation.
A person close to the process told Financial Times that Bain was
"still interested, but with significant reservations.” At the time, neither
Apollo nor Bain Capital commented on the record.
In an internal memo sent to staff on February 13, CEO and president Hiroshi Igarashi
told staff of the development and added: “We recognise that exploring a
strategic partnership created some ambiguity. This clarity of strategic
direction will enable us to spend more time where it matters most: with
clients, driving growth and fuelling innovation.”
The disclosure
is timed with the announcement of Dentsu’s
full-year earnings; the group reported a record net loss of ¥327.6 billion for
the year to December 2025, driven largely by an impairment loss of ¥310.1
billion linked to underperforming overseas operations. The loss widened from
¥192.1 billion a year earlier. In response, the company said it would skip its
annual dividend payment.
In December 2025, Dentsu completed the sale of its former headquarters in Tokyo’s Ginza district—first opened in 1933 and long seen as a symbol of the company’s rise in post-war Japan—booking a gain of more than ¥30 billion ($200 million). The transaction was finalised on January 30, 2026.
Leadership overhaul
Central to the overhaul is a simplification of Dentsu’s global leadership hierarchy.
The company will eliminate roles of global chief operating officer (COO) and global president, positions that previously formed key pillars of Dentsu’s matrix management structure.
For the first time, regional CEOs and global practice presidents
will report directly to the global CEO.
To support the fresh structure, two new
executive functions are established: A global chief transformation officer (GCTO) for enterprise-wide
transformation initiatives and aligning strategies, operations and technology efforts
globally. A new global chief corporate affairs officer (GCCAO) will be created
to oversee governance across legal and compliance, internal control and risk,
and sustainability.
Key appointments and transitions
Yoshimasa Watahiki, currently COO of Dentsu Japan, will assume the role of director, representative executive officer, vice president & global chief corporate affairs officer.
Watahiki will continue as COO of Dentsu Japan and take on additional global governance responsibilities. Watahiki has held roles in the media division before moving into business management leadership positions. Since 2020, he has served as an executive officer within Dentsu Japan and was appointed COO in 2023.
Noritaka Omi, previously global chief business operations officer, has been appointed global chief transformation officer.
Jean Lin, formerly global president for the Global Practices division, will become the global chief brand officer.
Beth Ann Kaminkow, previously CEO of Dentsu North America, will serve as CEO, Dentsu Americas & chief global client officer.
Yoshiki Ishihara transitions from global chief strategy officer to chief new ventures officer. Whereas the former chief brand & culture officer, Manus Wheeler, is now the chief of staff.
Shigeki Endo, who joined the agency in July 2024 following senior roles at General Electric, British American Tobacco and Accenture Japan, will remain the global CFO.
Endo is leading the reviews of underperforming overseas businesses and efforts to rebuild management foundations.
Further, subject to shareholder approval, Sano, Watahiki and
Endo have been nominated as candidates for director. The decision is expected at
the March 27 shareholder meeting.
The new global CEO, Takeshi Sano
Takeshi Sano, 56, currently chief executive of Dentsu Japan and deputy global chief operating officer, will assume global chief executive responsibilities from March 27.
Sano has spent three decades at Dentsu, where he has helped drive steady growth in the domestic market and supported the group’s expansion beyond traditional advertising into areas including consulting. His career has spanned leadership roles across business transformation (BX), digital transformation (DX) and client growth strategy.
Dentsu said it expected performance to improve in 2026, forecasting a net profit of ¥69.7 billion and admitting that “the likelihood of recognising additional goodwill impairment losses is limited”.
Sano told Campaign Asia-Pacific: “As we move into this next chapter, our focus is clear: to become the strongest growth partner for our clients. That means concentrating our energy on the technology, markets, and capabilities where we create the most value and where our insights, creativity, and technology can genuinely shift outcomes for brands and businesses.
Sano will be tasked with turning around the international unit at a time of
AI-driven upheaval in the sector.
Source: Campaign Asia-Pacific
