‘Overpayers’ social network
Advertising Age’s Abbey Klaassen is reporting that the two companies — criticized for overpaying for their respective digital advertising acquisitions — have rekindled six-month-old discussions to scratch each others itch.
Microsoft may possibly be seeking to shed its Avenue A/Razorfish, one of the units of aQuantive it purchased last year in a $5.9 billion deal. Avenue A accounted for about 60 percent of aQuantive’s revenue. But getting anywhere close to $3.5 billion would be far-fetched. The division’s market value is close to $800 million, Klaassen calculates.
Enter WPP’ s Martin Sorrell, who has also sought to unload Open AdStream, the ad-serving division of 24/7 Read Media, which WPP purchased for $649 million.
The hitch: Sorrell sees m&a activity in emerging markets like China, not the United States.
Keep an eye on:
- Merrill Lynch may seek to revise its contract with MGM to see if the studio violated any terms by “axing” Paula Wagner as UA’s CEO (NY Post)
- Beijing Olympics were a big ratings success for NBC, but profit estimates of as much as $100 million are too high. (FT)
- Consumer electronics companies want your TV to talk to your fridge. (NYTimes)
(Photo: Reuters / WPP’s Martin Sorrell)