A survey of the 100 largest international M&As over the past 10 years finds that only 24% of companies failed to divulge their new name or brand identity during the initial
merger announcement. The research, conducted by the image management firm Lippincott & Margulies, further affirmed that while initial M&A announcements tend to reach the
front page, or front page business sections of major papers, a follow-up story touting a company's identity change will typically "get buried on page C38."
Using ad equivalency ratings, the firm estimates that the AOL/Time Warner merger netted $121 million worth of coverage, while Pfizer's deal with Warner Lambert scored $12.5
million worth. (And while PR NEWS is generally suspect of the viability of ad equivalency measures, we nevertheless get the point: M&A announcements win seas of
ink.)
In short, companies that fail to announce their new names at the starting gate miss out on a prime chance to establish a firm foundation for their infant brands. "It's like
having a baby and not naming it until it's a year old - and then naming it John Doe," says Suzanne Hogan, senior partner at Lippincott & Margulies. "It's both anticlimactic
and a squandered opportunity."
(Justin Blake at Edelman PR, for Lippincott & Margulies, 212/704-8165, x8126)