Microsoft Sells Razorfish to Publicis for $530M
Microsoft’s online advertising agency Razorfish has been sold to French advertising company Publicis Groupe for approximately $530 million, the French concern announced today, confirming last week’s reports that it was bidding on Razorfish. The sale had been reported before the confirmation by the Wall Street Journal and PaidContent, and perhaps by others. Publicis said in its announcement that the payment is expected to involve cash and Publicis Groupe treasury shares.
In addition, Microsoft and Publicis announced a five-year strategic alliance agreement through which Publicis clients can purchase display and search advertising from Microsoft “on favorable terms, in exchange for certain minimum guaranteed aggregate purchase levels,” according to the announcement. “The agreement also provides that Razorfish will continue to be a preferred provider to Microsoft for digital strategy, creative and experiential marketing services, and contains a commitment by Microsoft to spend a minimum amount for those services each year during the term of the agreement,” the statement said.
TechFlash quotes an e-mail from Microsoft spokesperson Lou Gellos as saying there are “no plans to displace any Razorfish workers in the Seattle region or elsewhere as a result of this agreement.”