Dentsu contemplates the possible disposal of its businesses beyond Japan's borders
Japanese advertising major Dentsu is considering various strategic options for its international business, including the potential sale of a minority stake or complete divestment. This move comes as the company grapples with financial challenges and aligns with broader industry consolidation trends in the advertising sector.
The strategic review process is being overseen by Dentsu's President and Global CEO, Hiroshi Igarashi. The decision was prompted by the company's financial performance, with Dentsu's international business struggling with profitability.
In 2022, the company's global CEO, Wendy Clark, resigned, and Dentsu announced business integration plans. However, these efforts have not been sufficient to turn around the fortunes of the international business.
The potential sale affects operations built through Dentsu's 2012 acquisition of Aegis Group for £3.2 billion, which expanded the company's global footprint beyond its traditional Japanese market. The acquisition included US-based digital marketing consultancy Merkle, which boasts significant technological advantages, particularly through its data and performance marketing expertise.
Dentsu recorded significant goodwill impairment losses during the second quarter of 2025, with the company cutting 3,400 jobs globally as international struggles intensified. As a result, the company expects to post an operating loss for the year. This contrasts sharply with its domestic Japan operations, which continue to perform well.
The company carries a total debt of $3.79 billion, though it has maintained a conservative debt structure with a net debt-to-EBITDA ratio of 0.2x as of 2023.
Potential buyers being considered by Dentsu for the acquisition of its international business include Sandeep Goyal, who is in active talks with global bankers and alliance partners, and several unidentified parties identified through mandated banks Mitsubishi UFJ Morgan Stanley and Nomura Securities. These banks are searching for potential buyers ranging from minority stake purchasers to full buyers of Dentsu's international creative and media business.
Recent departures from the company include Jean-Yves Scauri, National Head of SEO Australia, who left after 8.5 years. Additionally, T-Mobile shifted creative agency responsibilities away from Dentsu's in-house team.
The timing of the potential sale aligns with broader industry consolidation trends in the advertising sector. As the landscape continues to evolve, Dentsu's strategic review process could signal a significant shift in the company's international operations.
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