Razorfish (company)

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Razorfish
Type Subsidiary
Traded as NASDAQ: RAZF (1999-2003)
Industry Digital marketing
Predecessors
  • Razorfish Inc.
  • SBI Razorfish
  • Avenue A | Razorfish
Founded New York, New York 1995 (1995)
Founders
  • Craig Kanarick
  • Jeff Dachis
Area served Worldwide
Key people
  • Pete Stein (Global Chief Executive Officer)
  • Stephan Beringer (Chief Growth and Strategy Officer)
  • Ray Velez (Global Chief Technlogy Officer)
  • Daniel Bonner (Global Chief Creative Officer)
  • William Lidstone (Global Chief Marketing Officer)
  • Tim Perlstein (Global Chief Strategy Officer)
  • Shannon Denton (CEO, North America)
  • Michael Karg (CEO, International)
  • Rishad Tobaccowala (Chairman)
Services
  • Web Development
  • Media Planning and Buying
  • Technology and Innovation
  • Emerging Media
  • Analytics
  • Mobile
  • Advertising Creative
  • Social Influence Marketing
  • Search
Employees 2,000+
Parent Publicis Groupe

Razorfish, part of Publicis Groupe, is one of the world's largest[1] interactive agencies. Razorfish provides services including web development, media planning and buying, technology and innovation, emerging media, analytics, mobile, advertising, creative, social influence marketing and search.

Razorfish has more than 2,000 employees worldwide, with U.S. offices in New York, Chicago, Seattle, San Francisco, Philadelphia, Portland, Los Angeles, Atlanta, and Austin. In 2005–2007, it expanded overseas through acquisitions in London,[2] Paris,[3] Sydney, Hong Kong, Shanghai, Beijing, Berlin, Frankfurt,[4] Singapore and a joint venture in Tokyo.[5] In 2013, Razorfish launched its operations in India through the acquisition of Neev Technologies. Razorfish Neev is based in Bangalore and provides Outsourced Product and Application Development solutions.[6]

History[edit]

Beginnings[edit]

Razorfish was founded in New York in 1994 by childhood friends Craig Kanarick and Jeff Dachis, with the motto "Solutions to Hard Problems." The company was originally headquartered at Jeff's apartment in Alphabet City in Manhattan. Their first major project was a $20,000 assignment to create a small website for the New York Botanical Society, commissioned by Time Warner's Pathfinder business unit.[7] A few months later, they moved into an office at 580 Broadway and hired three new employees.

Early success[edit]

The company generated over $300,000 in revenues in 1995 and over $1.2m in 1996, with a $300k EBITDA profit, a feat that few other internet agencies at the time could claim. In additional to financial success, the company was frequently recognized for its outstanding graphic design work.[citation needed]

They were one of the first companies to have an animated homepage, utilizing the "server-push" capabilities of the latest version of the Netscape browser. Because of this and aggressive marketing tactics, their work became well known, well-respected, and the firm grew quickly over the next few years. Soon thereafter, they received a strategic investment from Omnicom (along with other New Media pioneers, Agency.com, Red Sky Interactive, Think New Ideas and Organic), making them one of the first firms to be financed by a traditional media holding company. Razorfish used this money to move to new offices, redesign their branding (to include the slogan "Everything that can be digital will be.") and expand operations. It and other New York-based Web design companies formed the core of a cluster of New Media companies known as Silicon Alley[citation needed].

The company became both extremely well known and respected in the industry. In 1997, the company generated over $3.6 million in revenues.

In January 1998, Razorfish made its first of what was to be many acquisitions, by purchasing Avalanche Systems. In 1998, Razorfish also acquired Plastic in San Francisco, and London-based CHBi, and Los Angeles-based <tag> media and then merged with Scandinavian interactive leader, Spray, which had offices in Sweden, Finland, Norway and Germany, making the company a true international player[citation needed] .

The company generated over $83 million in revenue in 1998 and was profitable, putting it on solid ground for an IPO. The company had over 1,100 employees at the time[citation needed].

In April 1999, the company had an IPO which raised $48 million at $16 per share.[7] With this new financing, the company continued to expand through both organic means and acquisitions[citation needed].

In fall 1999, Razorfish acquired International Integration, Inc|International Integration, Inc (I-Cube),[8] a Boston-based company founded by Sundar Subramaniam and John J. Donovan for $1.2 billion, its largest deal to date. The company's sales for 1999 topped $170 million.

In May 2000, Razorfish announced a new company, Intervision-Razorfish, a joint venture based in Tokyo. Around the same time, as the entire industry started to feel the effects of the dot-com bubble, Razorfish saw its revenues fall to $50.1m. In February 2001, Razorfish laid off 400 employees, roughly 20 percent of its staff, with its stock price descending from a February 2000 high of $57 to just $1 per share.

60 Minutes interview[edit]

Contributing to the fall in the stock price was a disastrous 60 Minutes II interview with Bob Simon in 2001 where the founders were unable to describe what they actually did.[9]

Acquisition by SBI[edit]

Razorfish was taken private by SBI Group (formerly SBI and Company) in 2003[10] and was renamed to SBI.Razorfish. SBI also purchased other assets from "The Fast Five," including Scient/iXL, MarchFirst (formerly USWeb and CKS Group), Emerald Solutions, Lante, and Xcelerate.

Acquisition by aQuantive[edit]

The company was again renamed as Avenue A | Razorfish when the SBI.Razorfish division of the SBI Group (formerly SBI and Company) was acquired by aQuantive in 2004.

The Avenue A | Razorfish combination in 2004 resulted in an interactive agency which according to Ad Age had the highest interactive revenue in the USA in 2005, at $189.8 million.[11]

Acquisition by Microsoft[edit]

Microsoft announced on May 18, 2007 its intention to acquire Avenue A | Razorfish as part of a $6.0 billion cash purchase of parent company aQuantive.[12] The transaction closed on August 10, 2007. Razorfish continued to function as an independent company as part of Microsoft Advertising, run by Brian McAndrews, formerly CEO of aQuantive, who reported directly to the president of Microsoft's Platforms & Services Division. On October 20, 2008, the company decided to be known as Razorfish, dropping the Avenue A brand.

In June 2009, it was reported that Microsoft had put the company up for sale.[13]

Acquisition by Publicis Groupe[edit]

Microsoft had earlier in June 2009 notified the markets of its intention to sell Razorfish, which many believed conflicted with Microsoft Advertising's main operations that sell advertising technology services to rival agencies.[14] On August 9, Paris-based holding company Publicis Groupe agreed to acquire Razorfish from Microsoft for USD $530 million in cash and shares, which in turn gave Microsoft a 3% equity stake in Publicis Groupe.[15] [16] Clark Kokich had served as CEO of the company since July 2007; however, in April 2008, Bob Lord was named the new CEO, while Kokich took on the newly formed role of Chairman. In July 2013, Pete Stein was promoted to the role of Global CEO. Stein had been part of the executive leadership team for five years.

Global offices[edit]

North America
  • United States: Razorfish
Europe
  • Germany: Razorfish
  • UK: Razorfish
Asia-Pacific
  • Australia: Razorfish
  • China: Razorfish
  • Hong Kong: Razorfish
  • India: Razorfish Neev
  • Japan: Dentsu Razorfish
  • Singapore: Razorfish
Latin America
  • Brazil: Razorfish

Awards and recognition[edit]

1998[edit]

In April 1998, the Razorfish Subnetwork, designed by Razorfish, was added to the permanent collection of the San Francisco Museum of Modern Art.

2008[edit]

In 2008, Razorfish won over 75 creative awards including 10 Webbys, 11 Interactive Media Awards, 16 WebAwards, 3 OMMAs, 2 ADDYs, and 3 Create Awards.[17] The Nike “Sweet Spots” campaign produced by Duke, a Razorfish Company (located in France), was recognized on the 2008 Cannes Cyber Lions shortlist.[18] Also, Razorfish’s Chief Strategy Officer Jeff Lanctot, was named for the second consecutive year to the Mediaweek 50, a list of the country’s top media executives.[19] Forrester Research cited the company as a leader in “The Forrester Wave: Interactive Marketing Agencies” report published in December 2007.[20] Ad Age named (then) Avenue A | Razorfish 2005 media agency of the year.[21] Forrester Research ranked it as a top-tier web design agency in its 2006 Web Design Agency Shootout. Its work for Mercedes-AMG won the 2006 Webby Award for Best Automotive Site, and its redesign of NYTimes.com garnered a 2007 Webby for Best Newspaper Site.[22]

2010[edit]

In 2010, Razorfish was awarded Top Value Added Partner by Adobe for Razorfish's work in the Enterprise Partner Program for Omniture technology.

2012[edit]

Ad Age placed Razorfish at number 4 on their annual Agency A-List.[23] Also in 2012, Razorfish won the One Show Entertainment Gold pencil for Innovation in Branded Content for client Axe.[24]

2013[edit]

In 2013, Razorfish was again recognized by Ad Age, placing number 9 on their annual Agency A-List.[25]

References[edit]

  1. ^ Advertising Age Top Digital Agencies 2007, 5 May 2008
  2. ^ Avenue A / Razorfish Acquires U.K.-based Interactive Marketing Agency, DNA, 6 December, 2005
  3. ^ Avenue A / Razorfish Snaps Up French Agency, 7 March 2007
  4. ^ Avenue A/Razorfish Enters Germany With Neue Digitale Buy, 9 August, 2006
  5. ^ Avenue A/Razorfish Adds Japanese Outpost 17 January, 2007
  6. ^ http://www.business-standard.com/article/companies/publicis-acquires-neev-launches-razorfish-in-india-113041800217_1.html
  7. ^ a b "Razorfish, Inc. History". International Directory of Company Histories 27. St. James Press. 2001. 
  8. ^ Short Take: Razorfish acquires i-Cube CNET, November 2, 1999.
  9. ^ Brattitude Adjustment Wired, September, 2000.
  10. ^ "SBI and Company Completes Acquisition of Razorfish, Inc.". PR Newswire. March 3, 2003. Retrieved February 1, 2013. 
  11. ^ Top 50 Interactive Agencies - Advertising Age - DataCenter: Agencies April 28, 2006 (Revised June 5, 2006)
  12. ^ Microsoft Press Release, 18 May 2007
  13. ^ "Microsoft to cut Razorfish loose". 
  14. ^ "Microsoft puts Razorfish up for sale". Financial Times. June 28, 2009. 
  15. ^ Vranica, Suzanne (August 10, 2009). "Publicis to Buy Razorfish". Wall Street Journal. 
  16. ^ Mary Elizabeth Hurn (April 22, 2009). "Razorfish names Bob Lord CEO, Kokich to become chairman". Clark Kokich had served as the CEO of the company since July 2007, however in April 2009, Bob Lord was named the new CEO, while Kokich will took on [sic] the newly formed role of Chairman. 
  17. ^ Razorfish 2008 Awards
  18. ^ Cannes Cyber Lions Short List 2008
  19. ^ Mediaweek 50 2008 29 September 2008
  20. ^ The Forrester Wave: Interactive Marketing Agencies, Q4 2007 4 December 2007
  21. ^ Best Media Agency: Avenue A/Razorfish, Nov. 7 2005. Retrieved July 5 2012.
  22. ^ http://webbyawards.com/webbys/current.php?season=11#webby_entry_newspaper
  23. ^ http://adage.com/article/special-report-agency-alist/razorfish-4-ad-age-agency-a-list/232229/
  24. ^ http://www.oneclub.org/#olb=/_ajax/archive/?action=arc_work%26value=18801
  25. ^ http://adage.com/article/special-report-agency-alist-2013/razorfish-9-ad-age-s-agency-a-list/239320/

External links[edit]