Republican consulting firm FP1 Strategies and its sister public affairs firm PLUS Communications have been acquired by the public relations arm of advertising behemoth Omnicom, reports Politico, “a sign that even amid a global media and marketing slowdown, private equity firms aren’t the only deep-pocketed investors looking to cash in on the boom times for Washington’s advocacy shops, your host reports.”
According to Politico, Chris Foster, the global CEO of Omnicom Public Relations Group, said the acquisition is a signal that Omnicom PR is “bullish about our industry,” even in the face of an advertising downturn. “[We] believe in the power of communications,” he added, “but even more so that regardless of the broader macroeconomic climate, public affairs and corporate are growth areas for us.”
The deal, adds Politico, “hearkens back to a bygone era on K Street — the early aughts and 2010s — when communications conglomerates and international holding companies like Omnicom and WPP snapped up government affairs firms left and right. But those deals have mixed track records, and consolidation among D.C.’s constellation of political and consulting shops has continued in recent years — only now, it’s fueled by a private equity investment bonanza.”
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