Archive for the ‘Agencies’ Category

Microsoft looking to dump Avenue A?

August 25, 2008

Microsoft is talking with WPP again about the possibility of selling off Avenue A, so it canget out of the agency business which it never really wanted to be in. The big question is how much can Microsoft get. A lot of people said that Microsoft paid way too much for aQuantive when they purchased them. They picked up three business units in the deal, DrivePM, Atlas and Avenue A.

It will be interesting to see if Microsoft takes a LARGE hit and sells off the agency piece for a lot less than what they paid for, or if they will hold on and keep it as a revenue source. At least for now. Ultimately, Microsoft does not want to be in the agency business and remove the conflict of interest arguments that they receive, but the loss might be too big to take right now.