Microsoft to Sell Razorfish: Report

Microsoft Corp. (MSFT) is reportedly looking to unload its digital advertising agency Razorfish and has hired Morgan Stanley for that purpose.

The report by the Financial Times on Sunday also said that French marketing company Publicis Groupe SA could emerge as a possible bidder.

The FT stated that an analyst has valued the agency at $600 million to $700 million based on last-year's revenue of $400 million and profit margins for similar businesses of 12% to 13%.

Microsoft acquired Razorfish in 2007 as part of its $6 billion takeover of aQuantive.

The Seattle-based digital agency has more than 2,000 employees and boasts of a client list, which includes AT&T Inc. (T), McDonald's Corp. (MCD) and NIKE Inc. (NKE).

MSFT, a Zacks #3 Rank ("Hold") stock, have gained nearly 2% on lower-than-usual volume of approximately 40 million, against the average daily volume of about 64.1 million.

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