As reported in a recent article in the Wall Street Journal, "Publicis Groupe SA (PUB.FR) Sunday said it will acquire Microsoft Corp.'s (MSFT) digital advertising agency Razorfish for $530 million." Publicis reported that as this acquisition is completed, approximately a quarter of their annual revenues will come from digital communications. Some interesting points about this deal:
- Microsoft is also committing to spending a minimum amount for digital marketing services with Razorfish each year, Publicis said.
- Publicis' clients will be able to purchase display and search advertising from Microsoft on favorable terms - So Microsoft is double dipping?
- Razorfish, which has about 2,000 employees and an estimated revenue of $370 million to $380 million this year - That's almost $190,000 in revenue per employee.