Microsoft also received $286.8 million in cash, and promises for a variety of long-term strategic initiatives, and a relationship that stretches well beyond cash and equity investments. Publicis does not currently handle Microsoft's advertising services, which are primarily handled by Publicis rival Interpublic Group.

As a result of the deal, Razorfish now is a wholly-owned subsidiary of Publicis, but becomes a unit of VivaKi, the Publicis division that manages media and digital operations including Starcom MediaVest Group, ZenithOptimedia, Denuo, Digitas and VivaKi Nerve Center.

David Kenny, managing partner of VivaKi and member of the Publicis Groupe Management Board, has been given oversight for integrating Razorfish into the organization.

Based on results for the first eight months of 2009, Publicis' digital business, including Razorfish, now accounts for slightly more than 25% of its aggregate revenue.

Founded in 1995, and acquired by Microsoft as part of its 2007 acquisition of aQuantive, Razorfish has a roster of blue chip digital marketers including AT&T, Ben & Jerry's, Best Buy, Carnival Cruise Lines, Conde Nast, MillerCoors, Dell, Disney, JCPenney, Kraft, Levi's, McDonald's, Mercedes-Benz USA, Microsoft/MSN, Nike, Nortel, Olympus, Purina, Ralph Lauren, Samsonite, Starwood Hotels & Resorts, Toshiba, Victoria's Secret, and Visa.

Razorfish ranks as the second largest interactive advertising agency with fiscal 2009 revenues of $380, and has an organization of 2,200 employees in eight countries and 20 cities.

This news story is important. I recommend that everyone read it.