New-School Holding Companies Are Lean, Mean and Hungry for Acquisitions

It's an interesting post-recession development: new-school holding firms spending millions to swallow up indie shops and build out mini-empires, each attempting to put its own spin on a concept pioneered nearly 60 years ago by Marion Harper. They include Project, London-based Engine and Korea's Cheil. There are also slightly more senior firms, such as MDC Partners and Dentsu, which are both acquisition hungry.

Industry observers say there's room in the marketplace for new players but what isn't clear is who will benefit the most from more agency networks -- the umbrella organizations themselves, the shops selling to them or clients.

Project Worldwide, formed last October, is home to George P. Johnson, Juxt Interactive, G7 Entertainment Marketing and Partners & Napier, which Project acquired this month. All told, Project has 1,100 employees, 25 offices and 2011 projected billings of more than $830 million. That's relatively tiny by comparison to the Big Four, but Project is promising to ramp up fast.

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