Microsoft’s Razorfish is for sale

razorRazorfish is a digital advertising agency by Microsoft. Razorfish is based in Seattle and have 2000 employees worldwide.

Rumors have circulated for months that Microsoft was looking to sale Razorfish. Now a report claimed that Microsoft is formally moving ahead with the plan, hiring Morgan Stanley to help them find a buyer.

It is also been reported that the discussions are not only limited to selling Razorfish, but also to utilize Microsoft ad technologies and purchase “hundreds of millions of dollars” of ad space across its Web properties.

Razorfish’s clients include Travelchannel.com, Levi Strauss and Starwood Hotels which will make Razorfish an interesting playing card in Microsoft’s pursuit of Google in the online advertising world.

Potiential buyers include WPP, Omnicom, Publicis Groupe, Interpublic Group and Dentsu. reported by The Financial Times.

The Wall Street journal reports that those ad companies should be carefull if they are entering in deep partnership with Microsoft.

Aligning too closely with Microsoft could pose a threat to a big advertising company’s status as a neutral third party supposed to seek out the best deals for marketers. The winning bidder could have a conflict of interest when choosing between search engines to buy ad time on, for instance. said Reporter Emily Steel.

The Wall Street journal also reported that Razorfish could only fetch as little as $400 million to several hundred million dollars based on the other advertising elements of the deal. Whereas previously, The Financial Times reported that Razorfish could sell for $600 to $700 million.

Microsoft acquired Razorfish as part of its $6 billion acquisition of aQuantive.