Publicis wins Razorfish in US$530m deal

MICROSOFT   DIGITAL   PUBLICIS

Global - French marketing group Publicis will pay US$530 million to acquire Microsoft's digital advertising agency Razorfish. 

Razorfish will continue to operate under its brand name but will be housed under VivaKi, the Publicis entity created in June 2008 to leverage the combined scale of Digitas, Starcom MediaVest Group, Denuo and ZenithOptimedia agencies.

Media reports say Publicis beat out rivals WPP, Omnicom and Dentsu which all expressed interest in the company.

Major clients of Razorfish include Best Buy, Ford, McDonald’s, Microsoft, and Starwood Hotels.

In addition, the parties have signed a strategic alliance agreement to explore ways to work together to help deliver innovative online solutions to brand marketers.

The agreement will will become effective at the closing of the Razorfish acquisition.

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.

Maurice Levy (pictured), chairman & chief executive officer of Publicis Groupe, said the Razorfish acquisition means Publicis will receive 25% of its revenues from digital advertising.  

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