Razorfish up for sale
ADOTAS — The digital ad agency seemed like an ill fit for Microsoft, and now, apparently, it’s finally up for sale.
Microsoft has appointed Morgan Stanley to find a potential buyer, according to the Financial Times. Publicis, the French marketing company that says it is planning more acquisitions in online advertising, is thought to be a possible bidder.
The Seattle-based Razorfish, formerly called Avenue A/Razorfish has about 2,000 employees, and an analyst estimated its value between $600-700 million based on sales of about $400 million last year. Microsoft acquired the agency as part of its $6billion takeover of aQuantive in 2007.
Reader Comments.
Exciting news from Redmond… and I have to admit that I was scratching my head (along with several Razorfish collegues that I know) about the need for Microsoft to step into the digital agency space. Aside from any technology and associated process that Microsoft was able to gleen from the Razorfish folks, I never could really figure this thing out.
Bigger question will be, “who has $700 million to spend?”… Will the holding companies step up to add another big digital agency to compete with their current rosters? Suppose it depends on their client lists and Razorfish bottom line. Will be fun to watch!
One analyst valued Razorfish at $600m-$700m, based on sales of about $400m last year and profit margins for similar businesses of 12-13 per cent.
So are we talking about $60M in revenue, is the margin is, let say 15%?
Do they pay their employees with peanuts?
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