Microsoft’s online advertising agency Razorfish has been sold to French advertising company Publicis Groupe for approximately $530 million, the French concern announced today, confirming last week’s reports that it was bidding on Razorfish. The sale had been reported before the confirmation by the Wall Street Journal and PaidContent, and perhaps by others. Publicis said in its announcement that the payment is expected to involve cash and Publicis Groupe treasury shares.
In addition, Microsoft and Publicis announced a five-year strategic alliance agreement through which Publicis clients can purchase display and search advertising from Microsoft “on favorable terms, in exchange for certain minimum guaranteed aggregate purchase levels,” according to the announcement. “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 statement said.
TechFlash quotes an e-mail from Microsoft spokesperson Lou Gellos as saying there are “no plans to displace any Razorfish workers in the Seattle region or elsewhere as a result of this agreement.”
Author: Robert Buderi
Bob is Xconomy's founder and chairman. He is one of the country's foremost journalists covering business and technology. As a noted author and magazine editor, he is a sought-after commentator on innovation and global competitiveness. Before taking his most recent position as a research fellow in MIT's Center for International Studies, Bob served as Editor in Chief of MIT's Technology Review, then a 10-times-a-year publication with a circulation of 315,000. Bob led the magazine to numerous editorial and design awards and oversaw its expansion into three foreign editions, electronic newsletters, and highly successful conferences. As BusinessWeek's technology editor, he shared in the 1992 National Magazine Award for The Quality Imperative.
Bob is the author of four books about technology and innovation. Naval Innovation for the 21st Century (2013) is a post-Cold War account of the Office of Naval Research. Guanxi (2006) focuses on Microsoft's Beijing research lab as a metaphor for global competitiveness. Engines of Tomorrow (2000) describes the evolution of corporate research. The Invention That Changed the World (1996) covered a secret lab at MIT during WWII. Bob served on the Council on Competitiveness-sponsored National Innovation Initiative and is an advisor to the Draper Prize Nominating Committee. He has been a regular guest of CNBC's Strategy Session and has spoken about innovation at many venues, including the Business Council, Amazon, eBay, Google, IBM, and Microsoft.
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