Microsoft Finally Selling Razorfish

Microsoft CEO Steve Ballmer's tongue

Microsoft is finally selling Razorfish, the digital ad agency it acquired along with aQuantive in 2007, the FT reports

The sale will help reduce the amount Microsoft overpaid for aQuantive by about $600-$700 million or so.  It also makes strategic sense: There’s no reason for Microsoft to own an ad agency.

FT: Microsoft has appointed Morgan Stanley to find a potential buyer for Razorfish, its digital agency.

Publicis, the French marketing company that says it is planning more acquisitions in online advertising, is thought to be a possible bidder…

One analyst valued Razorfish at $600m-$700m, based on sales of about $400m last year and profit margins for similar businesses of 12-13 per cent…

In August, two years after the aQuantive deal, more favourable tax implications will provide an opportunity for Microsoft to sell an asset some view as a conflict of interest with Microsoft Advertising, which sells technology to rival agencies…

Razorfish, which has headquarters in Seattle, is one of the largest digital agencies, with 2,000 employees. Clients include Audi, Nike and Kraft.



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