Unloading Avenue A?
Almost six months after the companies started talking, WPP and Microsoft have reopened talks that could have the software company unloading Avenue A/Razorfish.
Here’s how a deal could unfold: Microsoft unloads the agency in exchange for a WPP package that includes 24/7’s Open AdStream publisher ad-serving tool plus cash.
Today a digital shop, because of its growth prospects, can command a multiple of eight to 10 times that figure — making Avenue A/Razorfish’s estimated value about $800 million.
The market cap of WPP rival Interpublic Group of Cos. ($4.4 billion), and WPP’s own market cap is $10.7 billion.
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