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Update on the Publicis Razorfish Deal

About two months ago, I posted an article about the Publicis – Razorfish deal. Not that I have some sort of crystal ball, but here is a short paragraph I posted:

At the end of the day I don’t believe this deal will dramatically change the advertising industry. The integration of Razorfish will lead to adjustments in the portfolio, as well as reduced headcounts. Publicis will gain additional interactive expertise, and maybe they are on their way to “digital leadership”. However, Razorfish is the loser of this deal: they loose independence and will be integrated in the advertising potpourri of a large network (under the umbrella of another company). They have to find their place first, before they can gain strength. What’s left? Just a normal company acquisition…

And here are some news on the deal: As Razorfish is finally absorbed into Publicis Groupe, the two top execs Chief Strategy Officer Jeff Lanctot and Managing Director Jim Watson won’t be coming along for the ride. Read more

The New Advertising Super-Force?

Consequences of the PublicisRazorfish Deal.

There has been speculation, now it’s confirmed: Publicis Groupe SA and Microsoft announced Sunday that they had come to an agreement over the acquisition of Razorfish by Publicis in a deal valued at about $530 million. The deal brings Razorfish organizationally under VivaKi, the Publicis unit that has at its core a deepening of relationships between the company and media vendors.

A couple of weeks ago I have been asked by a German Internet magazine to write a guest comment on the speculations. I have been writing about the value of such an acquisition and the terms Microsoft has been exploring including a long-term agreement to utilize Microsoft’s technology, software and advertising assets.

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