Microsoft to Sell Razorfish... Finally!

This morning @LenKendall shared a link to a blurb in the Financial Times reporting that Microsoft is looking to sell off Razorfish (fka Avenue A Razorfish). All I can say is... s'bout time!

This was #9 on the list of things I'd do if I were running Microsoft. As I said last August, "I never understood why Microsoft was able to hang onto Ave A but everyone was up in arms until Google divested Performics. This is a complete conflict of interest. Ave A buys media from Microsoft and builds optimized Web sites for Live Search. I don't care what kind of firewalls you put up between these groups, it's impossible for Ave A to be impartial when creating media plans when its financial health is tied to Microsoft's profit. And vice versa with Microsoft's incentive to help Ave A succeed in the SEO space."

Update 8/10: Per the WSJ, Microsoft has agreed to sell Razorish to Publicis for $530 million. But the conflict lives on...

"As part of the pact, Publicis has entered a 'strategic alliance' with Microsoft, which includes a five-year media-buying relationship. In return for buying a certain amount of display and search advertising on Microsoft properties, Publicis will receive better ad rates."

Looks like Razorfish clients can still expect to see a disproportionate amount of Microsoft reco's on their media plans.