The acquisition of Razorfish is being made for 1.4 to 1.5 times its annual revenue.
The strategic Microsoft
-Publicis deal for Razorfish - which Microsoft has owned since the 2007-acquisition of its parent company aQuantive - was finalized after Microsoft held an auction for its Web ad agency, which attracted bids from some of the leading companies in the advertising arena - incl
uding the world's largest agency company, WPP, and Japan's largest agency company, Dentsu.
As per
company reports, after the deal is closed - most likely in the fourth quarter - Razorfish will function as a
n autonomous unit of the Publicis' VivaKi division; thereby continuing with its present management.
Commenting on the significance of the acquisition of Razorfish for Publicis, Maurice Lévy, Chairman and CEO of Public
is, said that the company expects to derive nearly a quarter of its revenue from interactive and digital advertising in 2010. Publicis already owns agencies like Saatchi & Saatchi, Leo Burnett, the MediaVest Group and ZenithOptimedia.
In a statement from Paris, Levy said: "The deal is another step forward in realizing our strategic vision of building a world leader in digital communications, a critically important space for our clients."
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