Monday, June 29, 2009

Report: Microsoft looks to unload ad agency Razorfish

Rumors have circulated for months that Microsoft was looking to unload Razorfish, the Seattle digital advertising agency it picked up as a result of its $6 billion acquisition of aQuantive. Now, the software giant is formally moving ahead with the plan, hiring Morgan Stanley to help find a buyer, according to a report.

One potential buyer is Publicis, the French advertising giant which has a tight relationship with Microsoft, reports the Financial Times.  Quoting an analyst, the newspaper reports that Razorfish -- which employs 2,000 people -- could fetch $600 million to $700 million.

Last fall, rumors also circulated that Microsoft had discussed selling the unit to WPP. At the time of that rumor, Razorfish CEO Clark Kokich told TechFlash that there were "no plans" to sell the company.

"That doesn't mean that two to three to four years from now, it might not happen," he said.

We've reported on numerous layoffs at the company in recent months, and speculated that the trimming could be a way to make Razorfish more attractive to potential suitors.

In April, Microsoft sold off another old aQuantive property -- Franchise Gator -- for about $20 million. Microsoft declined to comment on the report in the Financial Times.

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