Once a global network stitched together by high-profile acquisitions, Dentsu now finds itself grappling with the seams. The integration of Aegis, Merkle, and other international assets has proven more complex than expected, one that has left the Japanese giant with a fragmented global operation and a difficult choice about what to keep and what to let go.
In recent weeks, Dentsu has captured the attention of the advertising sector after announcing the potential sale of its international unit, which generated over $4.5 billion in net revenue in 2024. This decision is part of a broader wave of restructurings aimed at optimising its global operations while preserving the Japanese core as a center of profitability and cultural cohesion.
Mitsubishi UFJ Morgan Stanley and Nomura Securities have been hired to explore options for selling its international assets, which could range from a partial divestment to a full sale of its operations outside Japan. The company expects to make a strategic decision by the end of 2025. CEO Hiroshi Igarashi stated that the company is evaluating alternatives to enhance corporate value, but no decision has been made yet.
Dentsu’s media agencies stand consolidated under Carat, iProspect, and Merkle and that creates a unified structure for management and operational efficiency. But that playbook hasn’t translated as smoothly on the creative side. Under the Dentsu Creative umbrella, the attempt to unify creative shops has shown clear limits. Creative agencies, by nature, thrive on distinct identities and cultures, and folding them too tightly together risks diluting the very value that makes them competitive.
Unlike WPP, which opts for a wholly owned presence in key markets, or Havas, which operates under licensing agreements, Dentsu appears to be reassessing its control and collaboration in overseas markets. The tricky part is that any buyer of these assets could end up competing with Dentsu Japan itself—a scenario the company will want to sidestep. After all, this isn’t a full sale of the brand name, but a targeted divestment of assets.
appears to be reassessing the mix of ownership, control and collaboration across regions—not least because the sale of international assets introduces a potential competitive paradox: any buyer could end up competing against Dentsu Japan itself. That makes this unlikely to be a traditional brand-offload; it is more likely to be a surgical pruning of assets that no longer fit the strategic thesis.
PE smells an opportunity
In Q2 2025, the company reported a net loss of about ¥79.9 billion (roughly $542 million) and cut around 3,400 jobs—about 8% of its international workforce. Revenues have also slipped, with organic growth down 8.9% in Asia-Pacific (excluding Japan) and 3.4% in the Americas. These numbers have forced Dentsu to confront some tough choices about its global footprint and how quickly it needs to act.
Among the assets under review are the digital consultancy Merkle, acquired in 2018, and Tag Group, which has a strong presence in the UK. Merkle has been the main draw for potential buyers. Havas CFO and COO François Laroze have signalled interest in either a partnership or acquisition, particularly in the digital space. Publicis Groupe has already bowed out, choosing instead to double down on organic growth and AI investments.
Given the size and complexity of Dentsu’s international operation, a sale within the traditional agency ecosystem seems unlikely. Private equity firms, especially those with experience in consumer and tech-driven businesses, may be better placed to take it on and integrate without the conflicts of interest a rival holding company might face.
The timing is no accident. The broader advertising market has been cooling across key regions like the U.S. and Europe, while agencies everywhere are racing to modernise through AI. It’s a moment of reckoning for the industry, where questions of efficiency, technology, and structure are reshaping what scale and success look like.
On home base, Dentsu remains dominant. The Japanese operation brings in close to $6 billion annually, which is why the company may want to refocus on its most profitable and stable market. But if the international sale moves forward, it could hint at something bigger—a shift in how agency groups are valued, less for their creative firepower and more for their financial potential. It’s a shift that could upend the pecking order in the region and those who win might just be the ones who treat ownership and brand strategy as two sides of the same coin.
Editor's Note: An earlier version of this op-ed referenced Dentsu operating via joint ventures in China and India. Dentsu has denied this characterisation. The op-ed has been updated to remove the reference.
Humphrey Ho is the CEO of Helios & Partners.
