Microsoft gets $530m in sale of ad agency Razorfish to Publicis |
Connect with TechFlash on our Facebook page for all the latest technology news headlines and commentary, plus information and access to special events, photos from events, promotions and more.
Today On Techflash
Mass High Tech
- Microsoft Build: Windows 8 preview a hit, but are investors unhappy?
- Build an app in a day at Mobile App Hackathon
- Beefed-up Skype for Windows; Indie author joins Amazon's 'Kindle Million Club'
- Only solution to Xbox 360 update error is new console
- Ballmer: Windows Phone update 'Mango' has over 500 new features
Microsoft gets $530m in sale of ad agency Razorfish to Publicis
Ad giant Publicis Groupe this morning confirmed an agreement to buy Microsoft's Razorfish online advertising agency for $530 million, along with a five-year strategic alliance under which Publicis will buy display and search advertising from the Redmond company at "certain minimum guaranteed aggregate purchase levels."
Razorfish was part of Microsoft's $6 billion deal for Seattle digital marketing company aQuantive in 2007. The agency, formerly known as Avenue A/Razorfish, was seen as an odd fit inside Microsoft in part because it works on campaigns that run across a variety of sites, including Google, Yahoo and other competitors to Microsoft's online properties. The clues that Razorfish wouldn't be with Microsoft for the long haul included the fact that its employees didn't get the standard Microsoft benefits package.
[Update, 8:40 a.m.: There are "no plans to displace any Razorfish workers in the Seattle region or elsewhere as a result of this agreement," said Microsoft spokesman Lou Gellos in an email message this morning, responding to our question on that topic.]
The cash-and-stock agreement with Publicis follows a bidding war that included ad companies WPP PLC and Omnicom Group, according to the Wall Street Journal, citing people with knowledge of the bidding. Dentsu, Japan's largest advertising company, bid more than than Publicis did, the Journal reported.
That suggests that details of the strategic alliance may have tipped the balance in favor of Publicis, bringing the promise of guaranteed ad revenue. Microsoft is hungry for online advertising dollars and traction in the search market, as evidenced by its 18-month pursuit of Yahoo for their recently announced online advertising and search partnership.
"The agreement helps Publicis Groupe media clients by allowing their agencies to purchase display and search advertising from Microsoft over the five-year term of the agreement on favorable terms, in exchange for certain minimum guaranteed aggregate purchase levels," the companies said in a news release. "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 Razorfish management team will remain intact, according to Publicis, and the agency will operate under its own name as part of VivaKi, a Publicis umbrella for Digitas, Starcom MediaVest Group, Denuo, and ZenithOptimedia.
If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.
TechFlash Team
Recent Sponsor Posts
Who's creating today's energy efficient buildings? Find out at the BetterBricks Awards, Feb. 16
BetterBricks Awards salute the individuals leading the way for high performance commercial buildings with an emphasis on energy efficiency. Join us as we recognize these standout green building professionals.
Award categories include: Advocate; Architect/Designer; Facility Manager/Operator; and Owner/Developer.
Keynote Speaker: Kevin Kampschroer, Director of U.S. GSA's Office of Federal High Performance Buildings. Kevin leads the U.S. General Services Administration's efforts in building sustainability and accelerating industry adoption of sustainable principles across all aspects of a building's life.
Register here by February 10!
If you are interested in buying a table, email Monica Alquist or call her at 206-876-5404.
The Triple Door Presents: The Atomic Bombshells "J'ADORE!: A Burlesque Valentine"
Seattle's reigning Burlesque super-troupe delivers a gorgeous and glittering VALENTINE featuring some of the Bombshells' most exhilarating acts to date. J'Adore! promises to celebrate l'amour with good humor, style, and a healthy dose of dazzle! Bring a friend, a lover, a family member, or a secret crush, and celebrate with the Valentine's Burlesque spectacular that will leave you shouting: "J'ADORE......The Atomic Bombshells!" The incomparable Jasper McCann emcees with high style and charm.
Please visit www.thetripledoor.net for a full schedule of future performances.
The Triple Door Presents: Bob Mould – See A Little Light: An Evening of Reading and Music
"Bob Mould. Those two words are synonymous with integrity. From Husker Du in the last century to right at this moment, Bob is the real deal, writing and playing music for music's sake. He's a great songwriter and performer. I have been a fan of Bob's for thirty years now with no end in sight." -Henry Rollins
Please visit www.thetripledoor.net for a full schedule of future performances.
Why Choose BDO for your SOC (previously SAS 70) Reports?
BDO’s experience in providing attestation services (SAS 70/SSAE 16, AT 101, AT 201, AT 601, etc.) to a broad range of industries, and our team of skilled professionals distinctly qualifies us to serve as your company’s Service Auditor. By leveraging the BDO global network of control specialists, we are poised to provide global services in more than 1,000 offices and across 119 countries. Many organizations find that investing in reports on controls may result in benefits, including:
• Increased client confidence
• Improved competitive advantage
• Minimization of frequent audits
• Streamlined business processes and controls
• Enhanced risk management
For detailed information contact Paul Martini at pmartini@bdo.com.
