Microsoft to sell Razorfish

Microsoft to sell Razorfish
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First Published: Mon, Jun 29 2009. 10 08 AM IST
Updated: Mon, Jun 29 2009. 10 08 AM IST
New York: Microsoft has hired Morgan Stanley to sell Razorfish, its digital agency, and French marketing company Publicis Groupe SA is thought to be a possible bidder, the Financial Times said on its Website late Sunday.
Microsoft acquired the agency, formerly called Avenue A Razorfish, as part of its $6 billion takeover of aQuantive in 2007.
The report cited an analyst valuing Razorfish at $600 million to $700 million, based on sales of about $400 million last year and profit margins for similar businesses of 12 to 13%.
Publicis and Morgan Stanley were not immediately available for comment.
Microsoft declined comment.
Razorfish is one of the largest interactive advertising and marketing agencies, boasting a client list that includes McDonald’s Corp, Starwood Hotels & Resorts, and Carnival Cruise Lines.
Microsoft and VivaKi, the digital arm of Publicis, last week unveiled a broad cooperation deal to develop new content, improve marketing performance and better target digital advertising audiences.
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First Published: Mon, Jun 29 2009. 10 08 AM IST