-By Steve McClellan

Omnicom Group veteran Steve Grubbs, currently CEO of the holding company's sports and entertainment division, is leaving the firm at the end of the year. The news was disclosed to company employees in a recent e-mail from Omnicom Media Group CEO Daryl Simm.

The well-regarded Grubbs, who rose through the media ranks of the business, was appointed to his current post in March 2007. Previously, he had been North American CEO at PHD, and prior to that was U.S. CEO at OMD. Earlier, he headed up national broadcast buying at BBDO before Omnicom unbundled its media holdings.

Most recently, Grubbs has reported to Page Thompson, CEO of Omnicom Media Group North America. Sources said there is no current plan to replace Grubbs, and that direct reports such as OMD Sports managing director Tom McGovern will now answer to Thompson. But the branded-entertainment programming arm, known as Green Room Entertainment, headed by managing director Guy McCarter, will now report to OMD U.S. CEO Alan Cohen.

Sources said Grubbs has mulled a departure for some time. His impending exit was presented to the troops as a "retirement" from the company—where he has worked for over 20 years—although at 57, he is certainly young enough to take on other career assignments. Neither Grubbs nor Simm returned calls.

Sources said plans have been brewing for a while to shift Green Room Entertainment assets at OMD in order to provide clients with more direct branded-content opportunities.

Earlier this year, Omnicom formed a separate outside entertainment partnership with RDF Media in Los Angeles. Under that agreement, Omnicom put its five-year-old programming arm Full Circle Entertainment, which had been a part of Omnicom's sports and entertainment unit, into a venture between RDF and Omnicom Media Group, with RDF as the controlling stakeholder and managing partner.

Nielsen Business Media