Razorfish bought by Publicis for $530m
FRENCH advertising group Publicis yesterday agreed to buy Razorfish advertising agency from technology giant Microsoft for $530m (£317m) in cash and stock.
Publicis beat off around eight interested companies for Microsoft’s unit, including the UK’s WPP plc and Japanese firm Dentsu.
The Paris-based group’s chief executive Maurice Levy said the price paid was the result of an auction, and added he had no plans for similar acquisitions.
“This deal represents a real win for all parties, and allows Razorfish to continue growing as a leading player in the digital marketing industry,” a Microsoft spokesman said.
Microsoft took on Razorfish as part of its $6bn acquisition of aQuantive in 2007.
As part of the arranged deal, digital advertising world number one Publicis, which counts General Motors (GM) and Procter & Gamble as its customers, will buy up advertising in Microsoft’s digital arms, including its newly launched search engine Bing.
This is part of a wider five-year agreement in which Publicis buys display and search advertising from Microsoft at attractive terms. This will be in return for minimum guaranteed purchases.
Publicis also has a similar deal with Google, dating back to January 2008, but the two alliances will work side by side, the company said.
The acquisition comes as Publicis and its rivals seeks to up the ante in terms of online expertise and marketing, and move more advertising onto the internet.
Razorfish’s clients include Best Buy, Ford, McDonald’s, Microsoft and Starwood Hotels.
Levy said that Razorfish has around 2,000 employees and a revenue of $370m to $380m this year.