☕️ Mad Avenue power

Good morning.

Omnicom and Interpublic are reportedly on the verge of merging into an ad empire Don Draper could’ve only dreamed of— up to $22 billion in value and generating US$20 billion ($31 billion) in net revenue. The deal would be the biggest to date on Madison Avenue, dethroning WPP as the industry’s largest revenue generator and consolidating marquee names like BBDO and McCann.

The move is all about survival in a market under siege—not just by AI and tech titans like Google but by a turbocharged Publicis, which is outpacing rivals with its digital dominance. But as the WSJ notes, the deal’s ad-buying dominance is certain to draw regulatory scrutiny.

Not bad.

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Market movers

Tuas shares jumped Friday as the TGP spinoff flipped to a Q1 net profit, raking in S$16.1 million on S$35.5 million in revenue. Mobile subscribers on its Simba network hit 1.11 million by October, with 10,000 broadband users joining the fold by November.

The company stuck to its S$45–55 million capex plan, showing confidence in mobile and broadband growth.

The quick sync

• DAZN nears deal with News Corp to acquire Foxtel, signalling a major shakeup in Australia’s streaming landscape. (Capital Brief)

• Debanking risks are sidelining Australian crypto and fintech innovators as banks cite compliance concerns, leaving entrepreneurs scrambling. (Capital Brief)

• ANZ CEO Shayne Elliott to retire after nine years, with an external successor set to oversee the Suncorp merger amid market scandal scrutiny. (AFR)

• Defence’s $811m spend on big five consultants in 2022-23 could have funded Australia’s entire submarine fleet for a year, sparking fresh scrutiny of outsourced costs.(AFR)

• St James's Place scraps lavish staff events, including its London and Gleneagles gatherings, to rebuild its image amid criticism of aggressive sales tactics and high fees. (FT)

• Rare whisky auctions tumble as volumes drop 34% and values plunge 40%, hit by inflation, interest rates, and faltering global demand. (FT)

Trading floor

M&A

• The owner of The Guardian has sold The Observer to Tortoise Media despite a journalist strike. (AFR)

• Potentia Capital is delaying the exit of its successful investment, Micromine, due to internal staff issues. (AFR)

• Pacific Equity Partners (PEP) is likely to consider acquiring MotorOne after its recent purchase of SG Fleet, due to potential synergies between the two companies. (The Australian)

• News Corp is in advanced talks with DAZN to potentially sell Foxtel. (Capital Brief)

• Quadrant Private Equity's Bastion Security Group has acquired Melbourne-based cybersecurity firm Cythera. (AFR)

• Private equity firms are struggling to sell their childcare assets due to severe staffing shortages in the industry. (The Australian)

• Dexus has placed a bid to acquire Campus Living Villages' Australian student housing portfolio. (AFR)

• Google has renewed a deal with Country Press Australia to include their publications in Google News Showcase and provide digital tools to boost subscriptions. (Capital Brief)

• Whitehaven Coal has withdrawn from the bidding process for the Kestrel coal mine, leaving Stanmore Coal as the leading contender. (The Australian)

• BlastOne, a corrosion control company, is seeking a financial partner through Allier Capital and William Blair. (AFR)

Capital Markets

• Roc Partners is launching an evergreen fund to attract wealthy individual investors. (AFR)

• The Clean Energy Finance Corporation (CEFC) has invested $116m in Resource Capital Funds to support the decarbonization of Australian mining projects. (AFR)

• Elon Musk's AI company, xAI, has raised $9bn in funding to compete with other AI giants like OpenAI and Anthropic. (AFR)

VC

• Umps Health, a health tech startup, has raised $2m to develop AI-powered sensors for elderly home care. (Startup Daily)

People moves

• Donald Trump says he won’t replace US Fed chair Jerome Powell, claiming Powell would leave if told to, despite Powell's earlier stance that a president can't legally demote governors. (Capital Brief)(NBC)

• Ant's Cyril Han to become CEO on 1 March, succeeding Eric Jing, who remains chairman, as the fintech giant navigates its post-restructuring era. (Bloomberg)(Reuters)

• Billionaires Patrick Soon-Shiong and Jeff Bezos face backlash over controversial plans to rebuild trust in US newspapers through AI tools and editorial shake-ups. (FT)

The watercooler