A sad day... And the end of an era draws near...
Ken Cosgrove is having a good time torturing Pete at a client dinner. Remember, Ken was fired by SCP at the request of McCann Erickson and he now represents the advertising arm of Dow Chemical-- the firm's multi-million dollar client.
At the office, a letter comes in, and Dawn, the secretary, seems to have messed up. Roger Sterling is reading it, and he's furious. The lease for the building was not paid. Roger summons her into the office to fire her. Joan is there, listening to suggest that Roger think twice about firing Dawn and a few of the secretaries over an honest mistake.
Joan investigates, and as it turns out, it wasn't a mistake: McCann Erickson has given written notice and is pulling the lease. SCP has one month to relocate out of the Time and Life building.
Roger gives a call to Ferg Donnelly, his contact at McCann. He confirms that there isn't a mistake. McCann is going to absorb SCP, and the agency is going to move into their offices. Ferg says McCann doesn't want to pay the expensive rent of two floors in Mid-Town Manhattan for a subsidiary agency.
In one of the saddest, yet greatest moments of the series, Don, Roger, Joan, Pete and Ted meet in Don's office to reveal to each other the fate of the agency. It's such great acting by all of them-- as you can see their eyes glisten while Don pours drinks for everyone. They all know the end is drawing near.
Pete feels he owes it to Peggy to tell her the news about the agency. She doesn't want to go to McCann, and starts weighing her career options throughout the episode.
Don prepares the pitch of a lifetime-- to save Sterling Cooper. McCann was holding on to SCP because they were the ones that handled clients that were a conflict of interest to their bigger clients. The partners hold a meeting with Jim Hobart, a top McCann executive, with Don leading the presentation.
Don says there are over $18 million in billings to these "conflict" clients, and the solution is to handle them in California, in their modest offices, which he dubs "SCP West".
Hobart isn't having it, and cuts off Don. He says they've passed the test, and they shouldn't be upset. They've died and are now in advertising heaven. He looks to each of them to give them their new assignments: Sterling has Buick... Ted Chaough has Ortho Pharmaceutical... Pete has Nabisco... Don has Coca-Cola... He leaves Joan out, who glances around the room.
Hobart tells them to pop some champagne, but the partners look defeated.
Joan has dealt with several sexism issues with McCann already, and she is the least comfortable going forward out of all the partners. She shares some of her problems over the phone with her new boyfriend back in L.A. Signs seem to point to her taking an exit from the business to be with him.
They go out to a farewell of sorts, toasting in a bar at the same table where the great movie "Good Night and Good Luck" was filmed. Joan tells Don she's happy he went down swinging. Don and Roger stay late at the bar and keep getting drunk. Roger reveals that he's sleeping with Megan's mother. Don is surprised, but still amused by the news.
Stan Rizzo and Peggy are sharing all the information they have about the conglomerate takeover. They take confidence with each other, and Peggy goes so far to reveal that she gave her child away. She also reveals to him that she will make the move to McCann.
The McCann rumor has spread like wildfire, and the office is in a frenzy. Roger and Don bring everyone together to let them know about the move. They try to give reassurance, but everyone just scatters and walks away to the tune of Dean Martin's "Money Burns a Hole in My Pocket".