WPP Group acquired J. Walter Thompson and Ogilvy & Mather, to pay a high premium to profit. In each acquisition, goodwill acquired immediately written off against equity. Then, WPP Group creates value for the brand names of the two companies. The cost will be $ 350 million. The case describes the process of brand valuation, the differences between UK and U.S. accounting practices, and the motivation to make a deal. "Hide
by William J. Bruns Jr., Susan S. Harmeling Source: Harvard Business School 19 pages. Publication Date: September 6, 1991. Prod. #: 192038-PDF-ENG
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