Microsoft to Put Razorfish for Sale, Says Report

June 29, 2009 · Filed Under News by Kalyani Mukherjee·

Microsoft may be planning to sell Razorfish, its digital agency, according to a report posted on the Financial Times website late Sunday.

Microsoft, the world’s largest software maker has reportedly hired Morgan Stanley to facilitate negotiations in the sale of Razorfish and French marketing company Publicis SA is expected to be a frontline bidder according to the Financial Times news report. Formerly called Avenue A Razorfish, the digital agency was acquired by Microsoft in 2007 as part of a takeover deal which saw the software giant buying aQuantive for six billion dollars.

Razorfish is one of the best-known agencies in the field of interactive advertising and marketing. The agency has a long list of reputed clients which includes heavyweights such as McDonald’s Corp, Carnival Cruise Lines as well as Starwood Hotels & Resorts. Citing an analyst, the Financial Times report estimates that Razorfish is worth between $600 million to &700 million. The estimate is based on sales of approximately $400 million notched up by Razorfish last year as well as profit margins of similar agencies which range between 12 to 13 percent. However the news of the impending sale of Razorfish could not be confirmed from any of the involved parties.

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