Mad Men: Every Sterling Cooper Merger & New Don Draper Agency Explained

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Over the seven seasons of Mad Men, the advertising agency Sterling Cooper experienced multiple buyouts and mergers. Despite all these changes, Don Draper (played by Jon Hamm) consistently remained in charge as the creative director.

The television series Mad Men is set in the decade between 1960 and 1970. The show follows the advertising agency Sterling Cooper, led by Bert Cooper and Roger Sterling, as it navigates the significant cultural shifts of the 1960s.

Sterling Cooper was a stylish and driven advertising agency, and Don Draper was its biggest star. However, it was still relatively small compared to industry leaders like J. Walter Thompson and McCann Erickson. Its success in winning major clients ultimately made it a target for larger agencies looking to expand.

Throughout the run of Mad Men, the advertising agency Sterling Cooper went through many changes – it was bought, revived, and merged with other companies several times. Here’s a complete timeline of those transformations and how it ultimately ceased to exist.

Putnam, Powell & Lowe Buys Sterling Cooper

In season 2 of Mad Men, the advertising agency Sterling Cooper was acquired by the British company Putnam, Powell & Lowe. Herman ‘Duck’ Phillips, who had become head of Account Services after replacing Roger Sterling, convinced his previous employers at PPL to make the purchase in late 1962.

Phillips took a risk by appointing Duck as the new president of Sterling Cooper, with the goal of either limiting Don Draper’s power or getting rid of him. However, when Don revealed he hadn’t signed a formal contract with the firm, Duck lost control and ultimately resigned from Sterling Cooper.

During the third season of Mad Men, PPL announced a reorganization plan, intending for Guy MacKendrick (played by Jamie Thomas King) to lead Sterling Cooper. However, after secretary Lois Sadler (Crista Flanagan) accidentally ran over Guy’s foot with a lawnmower, his advertising career ended, and PPL had to start their restructuring process all over again.

In season 3 of Mad Men, Lane Pryce (played by Jared Harris) arrived as a representative from Putnam, Powell & Lowe to manage Sterling Cooper’s money. He quickly became a central figure as the agency evolved into a new version of Sterling Cooper.

McCann Erickson Buys PPL & Sterling Cooper

In the final episode of Mad Men season 3, Don Draper discovered that McCann Erickson intended to acquire Putnam, Powell & Lowe. This deal would essentially give McCann control of Sterling Cooper as well.

Don Draper steered clear of McCann Erickson, refusing to work there at all costs, even before they tried to recruit him by approaching his wife, Betty. He considered the agency a harsh and exploitative workplace.

After Don, Bert Cooper, Roger Sterling, and Lane Pryce learned that McCann had acquired both PPL and Sterling Cooper, they devised a plan: Lane would fire them all, allowing them to launch a new agency of their own.

When Roger and the other partners left Sterling Cooper, he famously said, “Well, it’s official. December 13th, 1963. We’ve all essentially sabotaged ourselves.”

Sterling Cooper Draper Pryce Formed

In late December 1963, Don Draper started a new advertising agency called Sterling Cooper Draper Pryce. They initially worked out of a hotel before buying their own office space on Madison Avenue.

The newly formed SCDP started with a carefully selected team, featuring Pete Campbell, Peggy Olson, Harry Crane, and Joan Harris. By November 1964, Sterling Cooper Draper Pryce had quickly become a successful advertising agency.

SCDP faced a major crisis when its two biggest clients, American Tobacco and Lucky Strike – who accounted for more than half of their business – decided to leave. In response, Don Draper wrote a bold opinion piece for the New York Times stating that SCDP would no longer work with tobacco companies.

Even after losing their biggest client, Lucky Strike, Sterling Cooper Draper Pryce managed to stay afloat by landing new accounts like Vick Chemical, Heinz, Jaguar, and Mohawk Airlines. However, the agency remained relatively small and resourceful. By the end of season 5 of Mad Men, Peggy Olson had moved on to become the new Copy Chief at Cutler, Gleason & Chaough.

Joan Harris became a partner at SCDP, but the season 5 finale of Mad Men saw the tragic death of Lane Pryce. This happened after Bert Cooper and Don Draper discovered he had been stealing money, leading to his firing.

Sterling Cooper Draper Pryce Merges With Cutler, Gleason & Chaough

In season 6 of Mad Men, Sterling Cooper Draper Pryce continued to change in surprising ways. While vying for the Chevrolet account with General Motors in Detroit, Don Draper and Ted Chaough discovered that their agencies, despite strong creative work, were simply too small to compete effectively.

Don and Ted, working with Roger Sterling and Jim Cutler, quickly formed a merger that landed them the Chevrolet account. On October 27, 1968, Sterling Cooper Draper Pryce and Cutler, Gleason & Chaough officially became a single firm.

Sterling Cooper & Partners was the new, simpler name chosen for the firm after the merger. They also established a new office in Los Angeles, staffed by Pete Campbell and Ted Chaough.

Sterling Cooper & Partners Bought By McCann Erickson

The seventh season of Mad Men marked the conclusion of Sterling Cooper’s story. Bert Cooper passed away on July 20, 1969, while watching the Apollo 11 moon landing. Following his death, Roger Sterling reached out to McCann Erickson with a proposal: they should acquire Sterling Cooper & Partners, with Roger taking on the role of President.

After Jim Cutler was forced out and Don Draper kept his job thanks to a deal Roger made, McCann Erickson bought Sterling Cooper & Partners. But McCann quickly realized that keeping SCP as a separate agency was costing them too much money.

As a long-time fan of the show, it was really bittersweet seeing Sterling Cooper completely swallowed up by McCann Erickson. It felt like the end of an era! For the partners, it didn’t end well – Roger just decided to retire, which felt right for his character, Joan bravely struck out on her own to start a new agency, and Pete, ever the ambitious one, landed a job with Lear Jets. It was a pretty definitive ending for them all, really.

Donald Draper’s fears about working at McCann became reality, leading him to famously disappear and drive across the country to Los Angeles. It was there he came up with the brilliant concept that would become Coca-Cola’s most iconic advertisement.

The ending of Mad Men suggests that Don Draper returned to work at McCann, ultimately creating the iconic “I’d Like to Buy the World a Coke” advertisement – his biggest success after leaving Sterling Cooper.

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2025-10-25 17:30