Dec 8 (Reuters) - Advertising and marketing conglomerate

Omnicom Group ( OMC ) is in advanced talks to acquire

Interpublic Group in an all-stock deal that would value

Interpublic between $13 billion and $14 billion, excluding debt,

the Wall Street Journal reported on Sunday.

The deal, if reached, would be expected to attract

regulatory scrutiny as it seeks to merge the world's

third-largest ad buyer - Omnicom ( OMC ) - with the fourth-largest -

Interpublic. Both companies are based in New York.

Interpublic owns brands such as McCann, Weber Shandwic and

Mediabrands, and had a market value of around $10.9 billion as

of Friday. Omnicom ( OMC ) was valued at $20.2 billion and owns the

likes of BBDO and TBWA.

Interpublic's shares have fallen 10.36% year to date to

$29.48.

A transaction could be announced as early as this week, the

Journal reported, adding that the exact terms of the deal being

discussed could not be learned.

The combined revenues would be more than $20 billion, based

on 2023 figures. That would compete with the UK's WPP and

France's Publicis Groupe SA, which generate revenue of

$15 billion and $13 billion, respectively.

The rise of in-house AI tools provided by third-party

vendors or digital platforms is challenging traditional

advertising agencies, as clients look turn to cheaper and faster

alternatives.

In 2013, Omincom and Publicis called off a $35 billion

merger after regulatory roadblocks, which also would have

created the world's biggest advertising group.

Omnicom ( OMC ) and Interpublic did not immediately respond to

requests by Reuters for comment outside of business hours.

The recent strong performance of Publicis runs counter to a

general slowdown in the advertising industry, which is seen as a

bellwether for broader economic health. The CEO of Publicis

credited its implementation of AI to further drive its business,

adding it has many projects in the pipeline waiting to be

released once market conditions improve.