Publicis have splashed $530m on Razorfish.
Digitas are determined to put digital at the heart of the business and spending nearly $600m in this climate is not a cheque written in haste. As with all these things, they must see strategic reasons for spending their hard-earned.
UK Razorfish (or DNA) as most people still called it finally reached it’s earn out for the DNA founders earlier this year. That certainly made the Microsoft disposal easier…no messy payouts to get in the way. Razorfish US is a good shop, with a good client list and no doubt smart people.
In any agency acquisition you buy people and client relationships. How many people will survive the transfer is a question yet to be answered. Especially when they look at how Digitas has been on somewhat choppy waters of late. The other is clients…it will be interesting to see how many go out to pitch or how many see teh new network association as a boon.
Microsoft have chucked in loads advertising freebies and guaranteed revenues as a client to Razorfish – which is nice of them and will sweeten the deal for many Razorfish clients.
From a selfish stand-point, it means another competitor who will be somewhat distracted, even with the best will in the world, that kind of move unsettles an organisation.
The industry continues to morph and consolidate in front of our very eyes. Don’t blink, you may miss something.
Wildonion 