Page last updated at 07:49 GMT, Monday, 10 August 2009 08:49 UK

Microsoft to sell advertising arm

Mcrosoft building
Microsoft will own 3% of Publicis

Technology giant Microsoft is to sell its digital advertising arm Razorfish to French advertising company Publicis.

Under the deal, estimated to be worth $530m (£318m), Microsoft has to make minimum future spending with Razorfish.

Microsoft will receive 3% of Publicis, which is the fourth largest advertising firm in the world.

Microsoft took over Razorfish when it bought aQuantive, the parent firm of three digital marketing firms, as part of a wider $6bn acquisition in 2007.

"The acquisition of Razorfish is another step forward in realizing our strategic vision of building a world leader in digital communications, a critically important space for our clients," said Maurice Levy, chief executive of Publicis Groupe.

Digital communication will account for around a quarter of Publicis's revenue after the deal, up from 21%.

Key clients for Razorfish include Ford, McDonald's and Best Buy.

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