Microsoft in Talks to Sell A Avenue/Razorfish to WPP

by mark selfe on 25 August 2008, 18:56

Categories: Internet and Media - International - Internet
Topics: microsoft , london , yahoo , online advertising , Aquantive , WPP Group , Open AdStream , A Avenue/Razorfish , Martin Sorrell , Atlas Media Console , Drive Performance Media , JWT , Ogilvy & Mather Worldwide , Young & Rubicam

 
With Microsoft's deal with Yahoo being completely dead, the search giant continues to look for a partner to access the vast sums of revenues from the online advertising business, which is currently being dominated by arch nemesis, Google.

According to a report by Advertising Age, Microsoft is in talks with London's  WPP Group to sell its A Avenue/Razorfish, to the international Advertising behemoth, but this time with a new twist. Instead of an outright sale, Microsoft is looking to leverage a package deal from WPP's in utilizing its 24/7 Open AdStream plus cash.

An asset swap for WPP would allow the advertising giant to offload an ad-serving tool to publishers, a line of business that according to Advertising Age, is less crucial to its main line of operations.

Microsoft acquired A Aveneue/Razorfish last year as part of a package purchase from its $6 billion acquisition of aQuantive. That deal in 2007 also included Atlas Media Console and Drive Performance Media, which were the core of the acquisition.

WPP is the world's largest communications services group and has a plethora of  companies under its global umbrella. The advertising stable includes such giants as: Grey Global Group, Ogilvy & Mather Worldwide, Young & Rubicam, and JWT .

WPP employs over 100,000 people working in more than 2,000 offices in 106 countries. Last year Martin Sorrell's WPP stated a net income of nearly $12.5 billion.

Not too shabby.