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Dentsu’s Global Sell-Off Plan Falters as International Unit Sale Hits a Dead End
Dentsu’s Global Sell-Off Plan Falters as International Unit Sale Hits a Dead End
1/14/26, 12:00 PM
Dentsu’s attempt to sell its international advertising business has stalled after potential buyers withdrew, prompting the agency to pursue internal restructuring and job cuts as it refocuses on improving global performance.
Japanese advertising giant Dentsu Group Inc. is facing a major turning point as its long-anticipated plan to sell its international business appears to have faltered, forcing the company to shift focus toward internal restructuring and cost-cutting efforts. Reports indicate that interest from strategic buyers and financial investors has dried up, leaving Dentsu with few viable options to divest its overseas operations.
The international arm of Dentsu — which includes key assets such as London-based digital marketing company Tag Group and generated more than $4.5 billion in revenue in 2024 — had been shopped around to rival holding companies and private equity groups. However, multiple potential buyers reportedly backed away from deals after initial negotiations, citing concerns about performance and global market conditions. As a result, the planned sale is now widely seen as unlikely to close.
Instead, Dentsu has begun implementing an aggressive restructuring strategy focused on improving the performance of its international operations. This includes cutting **around 3,400 jobs — roughly 8% of its global workforce outside Japan — and broad operational adjustments to tighten spending and improve profitability. Analysts say these changes reflect mounting pressure from investors, including activist firms such as Oasis, which have previously questioned the direction of the company’s global strategy.
The stalled sale also sheds light on the challenges Dentsu has faced in competing with larger, more integrated global advertising networks. Consolidation in the industry — including the merger of IPG and Omnicom and the growing influence of Publicis Groupe — has intensified competitive pressures. Some industry observers have noted that Dentsu’s earlier strategy of repeatedly acquiring specialized agencies and technology firms did not yield the expected synergies, leaving its international business fragmented and less attractive to buyers.
Looking ahead, Dentsu’s leadership is expected to present updated strategies and financial results at its full-year earnings meeting, where investors will closely watch efforts to restructure and reposition the business for long-term stability.
