Its official, Razorfish has been sold… well more kind of a trade/sale. The French company Publicis Groupe are the buyers who claim to be the 4th largest communications company in the world. The estimated acquisition is $530 million. Razorfish’s current clientelle include Ford and McDonnalds.

Joshua Palau who is over Razorfish’s, “Search Marketing Trends” newsletter said,

“We are pleased to announce that Razorfish will be joining the Publicis Groupe. While the deal is expected to close over the next few weeks, this marks an important new chapter in the history of Razorfish as we find a home within the one of the world’s largest advertising holding companies. More importantly, Publicis Groupe believes in digital and understands that Razorfish accelerates their digital strategy.”

Here is a quote from the Publicis Group press release which was sent out Sunday August 9th. You can read the full press release here.

Publicis Groupe SA (Euronext Paris: FR0000130577) and Microsoft Corporation (NASDAQ: MSFT) jointly announced today that they have signed an agreement under which Publicis Groupe will acquire Razorfish, a leading digital marketing agency, in a transaction valued at approximately $530 million, expected to be provided in a combination of cash and Publicis Groupe treasury shares. In addition, the parties announced they have signed a Strategic Alliance Agreement that will become effective at the closing of the transaction.

My Thoughts

Ever since I visited Razorfish in Seattle almost 3 years ago (then called Avenue-A | Razorfish), I have followed them with a close eye. Back then the corporate race was to purchase the top ad-serving company. Google purchased DoubleClick for $3.1 billion, Yahoo purchased Right Media for $680 million and Microsoft bought aQuantative for $6.3 billion. Many thought that this large purchase was simply to keep up with the Jones’ and with the recent news of the sale of Razorfish that statement may have not been too far from the truth.

My biggest concern with the acquisition is the effect it will have upon the relationship with Microsoft. With recent work being focused on Microsoft’s touchscreen surface user interface (see video below) I am wondering if these ties will be ended?

However from reading the press release it seams as though Microsoft and the Publicis Groupe are looking to combine for a “Strategic Alliance”. With a part cash, part Publicis shares sale, I am wondering what strategy the two corporate giants have in mind. Either way I hope Razorfish continues to grow and not experience any red tape during the transfer process. I will be looking closely to see if any job losses occur, I sincerely hope not but then again it would not surprise me.

About the Author:  Rob Johnson is a freelance web developer who has a passion for online marketing. He is an Addy Award winner and currently teaches a New Media Strategies class at BYU-Idaho.