Microsoft is set to sell off leading digital agency Razorfish, says an
uncited
report by the Financial Times. Both Microsoft and potential
suitor, French marketing company
Publicis, have declined to comment on
the report.
Razorfish employs over 2000 people worldwide with nearly 70 in the
wholly owned, Sydney based digital agency, Amnesia. Amnesia has clients
ranging from Linkin park to their 2008 Webby Award winning Lynx Effect
campaign (mildly NSFW).
Razorfish acquired Amesia in 2006, with Microsoft subsequently
acquiring Razorfish as part of its US$6 Billion dollar aQuantive in
2007. The sale is expected to raise US$600-700 million for Microsoft.
Razorfish worldwide is run as a separate company and, as many
commentators have pointed out. The partnership never really made sense.
They are businesses that are (necessarily) run on very different
scales, with little opportunity for synergy.
The GFC and subsequent freefall of advertising markets may have had
something to do with Microsoft's decision. Or perhaps they just want to
focus their efforts on Bing and Windows, and not have to worry about
the vagaries running a digital agency.
Regardless it appears Microsoft is ready to let to let the Razorfish out of the
Redmond pond, kiss it, and throw it back for someone else to enjoy. Rex
Hunt would be proud.
