Tokyo-headquartered advertising giant Dentsu is weighing the sale of its international operations, a move that could mark the end of its decade-long push to compete with global rivals such as WPP, Publicis, Omnicom, and Interpublic.
According to media report, the group has appointed Mitsubishi UFJ Morgan Stanley and Nomura Securities to sound out potential buyers for its creative and media units outside Japan. Rival advertising groups and private equity firms are said to be among those approached.
The possible divestment comes as Dentsu faces mounting challenges in its overseas markets. On August 15, the company announced an 8% global workforce reduction, affecting about 3,400 roles across corporate and back-office functions. At the time, Dentsu described the move as part of a restructuring designed to streamline operations without undermining long-term competitiveness.
Dentsu’s struggles abroad contrast sharply with its robust domestic performance. In its financial results for the first half of 2025, the group reported a 0.2% year-on-year decline in organic revenue overall, with Japan emerging as the lone bright spot—delivering 5.3% growth and record-high net revenue and operating profit. “Our Japan business achieved sustained growth for the ninth quarter in a row. However, our international business continues to face negative growth across all regions,” said Hiroshi Igarashi, Dentsu’s president and global CEO, in a statement.
Global media reports also noted that Dentsu’s international arm has long been under pressure, with revenues squeezed by tighter client budgets and intensifying competition. The group had bet heavily on overseas expansion in 2012 with its £3.2 billion acquisition of UK-based Aegis Group, one of the largest advertising deals of its time. Subsequent acquisitions included US-based Merkle and London’s Tag Group. While these moves once elevated Dentsu to the position of the industry’s fifth-largest holding company, profitability has remained elusive.
Last year, Dentsu’s international operations generated over $4.5 billion in net revenues, yet the unit continued to drag on overall performance. The company recently cut its full-year forecast, now expecting an operating loss of ¥3.5 billion ($24 million), compared with an earlier projection of ¥66 billion in profit.
Industry observers told the FT that the sale talks also reflect broader disruption from artificial intelligence, which is reshaping creative and media planning services. Competitors like Interpublic and Omnicom are investing heavily in AI-driven advertising tools, while Dentsu risks falling behind.
In response to Japanese media queries, a Dentsu spokesperson said, “Nothing has been decided, and we are looking at various options to increase the corporate value.”
If pursued, the sale could fetch several billion dollars and reshape the future of one of the world’s most prominent advertising groups. A firm decision is expected by year-end.
