Microsoft seeking buyer for Razorfish

Jul 13, 2009
Microsoft has approached five of the world's biggest advertising companies about buying its digital advertising agency Razorfish, The Wall Street Journal reported on Monday.

Microsoft has approached five of the world's biggest advertising companies about buying its digital advertising agency Razorfish, The Wall Street Journal reported on Monday.

The newspaper, citing "executives familiar with the situation," said the deal could include using Microsoft's technologies and possibly buying hundreds of millions of dollars of ad space across its Web properties.

It said WPP, Omnicom Group and Publicis Groupe have expressed interest in Razorfish and were considering a more extensive commercial relationship with the Redmond, Washington-based US giant.

Microsoft, which has hired Morgan Stanley to shop Razorfish, has also been in contact with Interpublic Group and Dentsu, the Journal said.

The newspaper said the move is the latest bid by Microsoft to compete with Google in the advertising market.

Razorfish has some 2,000 employees and had 400 million dollars in revenue last year. It clients include Best Buy, Mercedes-Benz USA and Mattel.

The Journal said a buyer could use Microsoft's digital ad services or buy ad space across Microsoft's digital properties such as its new search engine Bing, websites, the Zune music player and the Xbox gaming console.

The newspaper cautioned that "talks are preliminary and that any deal isn't likely to happen for at least a couple of months."

It said the price could range widely, from as low as 400 million dollars to "hundreds of millions of dollars more, depending on the technology or ad-buying commitments included in the deal."

Like other ad agencies, Razorfish has been hit by the , laying off employees and closing offices this year, the Journal noted.

acquired Seattle-based Razorfish two years ago as part of its six billion dollar purchase of digital marketing concern aQuantive.

(c) 2009 AFP

Explore further: HP sales inch up while profit drops

add to favorites email to friend print save as pdf

Related Stories

Microsoft, Yahoo! in search, ad talks

Apr 10, 2009

Microsoft and Yahoo! have held "early discussions" about possible Internet search and advertising partnerships, a leading Silicon Valley technology website reported on Friday.

Rupert Murdoch, Tom Glocer support Microsoft-Yahoo merger

May 29, 2008

Two media titans, Rupert Murdoch and Tom Glocer, the head of Thompson Reuters, said they support a partnership between computer giant Microsoft and Internet giant Yahoo, after a deal between the two companies fell apart in ...

US newspaper ad revenue slide continues

Jun 01, 2009

US newspaper advertising revenue fell more than 28 percent in the first quarter of the year with both print and online posting declines, according to the Newspaper Association of America.

Yahoo shares rise following Microsoft ad-deal report

Apr 13, 2009

SAN FRANCISCO _ Shares of Yahoo Inc. bucked the downward trend for technology stocks Monday and gained more than 7 percent, following reports late last week that the company is in serious discussions with Microsoft Corp. ...

Grim US newspaper ad revenue figures released

Mar 27, 2009

Last year was the worst ever for the US newspaper industry with both print and online advertising revenue posting declines, according to Newspaper Association of America (NAA) figures.

Recommended for you

HP sales inch up while profit drops

3 hours ago

Hewlett-Packard on Wednesday reported that its quarterly revenue was nudged up by improved computer sales, but its profit dropped as the veteran technology firm tried to renew its momentum.

Restaurants experimenting with pay-in-advance tickets

6 hours ago

With restaurant patrons increasingly jumping on the Internet to make reservations, some high-end eateries here and across the country are adding a new tech wrinkle: having their clientele pay for their meal in advance using ...

Chip maker Infineon to buy California firm for $3B (Update)

9 hours ago

German chip maker Infineon Technologies AG says it has agreed to pay $3 billion in cash for California-based semiconductor firm International Rectifier, which produces power-management components used in everything from cars ...

User comments : 0