Microsoft to sell digital agency Razorfish

Microsoft has reportedly put digital agency Razorfish up for sale, with Publicis Groupe one of the favourites to buy it.

Razorfish was acquired by Microsoft when it bought parent company aQuantive for $6 billion in 2007.

A report in the Financial Times quotes an unnamed analyst as valuing Razorfish at $600-700 million based on sales of about $400 million last year and profit margins of similar businesses.

Maurice Levy, Publicis Groupe chief executive, said last month that funds from a refinancing scheme could be used for potential acquisitions, particularly in digital and emerging markets.

Microsoft recently announced a partnership with Publicis to cooperate on digital advertising and marketing opportunities (see Microsoft and Publicis announce digital partnership).

As part of the agreement, Starcom MediaVest Group, Zenith Optimedia and Digitas will be one of the first agency networks to use Microsoft Advertising’s planning and buying technology Admira when it goes live in Q4 2009.