The Barbarian Group's augmented reality Esquire issue

South Korean-based agency network Cheil Worldwide has bought a majority stake in digital boutique The Barbarian Group.

The Barbarian Group said that its management will remain intact, with the headquarters moving from Boston to New York. The financial terms of the deal were not disclosed.

The move is a big step for Cheil's expansion plans, both in the US and the digital space: The Barbarian Group has been at the cutting edge of digital initiatives including the ground breaking Burger King Subservient Chicken, the innovative CCN shirt project, relaunching and streamlining Red Bull's online presence and most recently creating the high-profile augmented reality issue for Esquire magazine. The Barbarian Group meanwhile acquires the substantial R&D, planning and strategic clout of Cheil, as well as the potential for global expansion.

Cheil was established in 1973 and is headquartered in Seoul, South Korea. The network has 29 offices in 25 countries with more than 1,500 employees. In February 2008 Cheil hired ex-Leo Burnett, London CEO Bruce Haines as chief operating office, with a mandate to grow the company globally, with particular regard to London and New York. Cheil subsequently bought a majority stake in Beattie McGuinness Bungay, which went on to open a New York office earlier this year.

"We've been talking casually to people off and on, but the last year really made us think the next step should be a big one," said Benjamin Palmer, CEO of The Barbarian Group. "This is the first company to come along that we really thought was interesting and different from the other opportunities out there - which are traditional holding companies - where you sort of know exactly what you're getting. They have a similar global infrastructure and financial backing, but I think it feels like a more non-standard path for us to take, which is exciting."

The move, Palmer added, begins a new era for the company of bigger, bolder initiatives funded by Cheil and backed by their global expertise across the marketing spectrum, including R&D, strategy and planning.

"They're really into us, in terms of our attitude and creative process: the pathway is wide open for us to do what we're doing now but in a bigger and more impactful kind of way," said Palmer. "Today feels like the new version of how it felt when we started and I didn't know what was going to happen next, but I knew it would be great. It's the grown up version of that!"

"The Barbarian Group leads the industry in creativity and innovation. By adding their expertise and talent to our already strong foundation in North America, we are well-positioned to grow here," Michael Kim, president of Cheil North America, said in a statement. "Bringing The Barbarian Group into Cheil North America is the latest in a string of moves throughout the past 12 months aimed at elevating our company to the next level of growth."

Rumors of the deal surfaced in mid-November, when ex-Marketing Week editor Stuart Smith blogged that the company had been bought by Cheil for $10 million. At the time, a Barbarian Group spokesperson said the rumored deal and its reported price tag were speculation.

www.barbariangroup.com
www.cheil.com