razorfish (company)
{{Advert|date=May 2021}}
{{Short description|American interactive agency}}
{{Infobox company
| name = Razorfish
| logo = File:Razorfish logo 2013.png
| type = Subsidiary
| traded_as = {{NASDAQ was|RAZF}} (1999-2003)
| industry = Digital marketing
| predecessor = {{unbulleted list|Razorfish Inc.|SBI Razorfish|Avenue A {{!}} Razorfish}}
| foundation = {{Start date|1995}}
New York City, United States
| founders = {{unbulleted list|Craig Kanarick|Jeff Dachis}}
| area_served = Worldwide
| num_employees = 2,000+
| parent = Publicis Groupe
| website =
}}
Razorfish is an interactive agency part of Publicis Groupe. Razorfish provides services, such as, web development, media planning and buying, technology and innovation, emerging media, analytics, mobile, advertising, creative, social influence marketing and search.
Razorfish had more than 2,000 employees worldwide, with U.S. offices in New York, Chicago, Boston, Seattle, San Francisco, Philadelphia, Portland, Los Angeles, Atlanta, and Austin. In 2005–2007, it expanded overseas through acquisitions in London,Avenue A / Razorfish Acquires U.K.-based Interactive Marketing Agency, DNA, 6 December 2005 Paris,[http://www.clickz.com/showPage.html?page=3625178 Avenue A / Razorfish Snaps Up French Agency, 7 March 2007] Sydney, Hong Kong, Shanghai, Beijing, Berlin, Frankfurt,[http://www.dmnews.com/Avenue-ARazorfish-Enters-Germany-With-Neue-Digitale-Buy/article/92267/ Avenue A/Razorfish Enters Germany With Neue Digitale Buy, 9 August, 2006] Singapore and a joint venture in Tokyo.[http://www.marketingvox.com/avenue-arazorfish-adds-japanese-outpost-026543/ Avenue A/Razorfish Adds Japanese Outpost 17 January, 2007] {{webarchive|url=https://web.archive.org/web/20120415050720/http://www.marketingvox.com/avenue-arazorfish-adds-japanese-outpost-026543/ |date=2012-04-15 }} In 2013, Razorfish launched its operations in India through the acquisition of Neev Technologies. Razorfish Neev was based in Bangalore and provides outsourced product and application development solutions.{{buzzword inline|date=December 2021}}{{Cite news|url=http://www.business-standard.com/article/companies/publicis-acquires-neev-launches-razorfish-in-india-113041800217_1.html|title = Publicis launches digital agency Razorfish in India|newspaper = Business Standard India|date = 18 April 2013|last1 = Pinto|first1 = Viveat}}
In October 2016, Razorfish merged with Sapient Corporation's division SapientNitro (a Publicis Groupe sister company) to form SapientRazorfish.{{Cite web|url=http://www.thedrum.com/opinion/2016/11/22/sapientrazorfish-whats-name-change-and-restructure-quite-lot-actually|title=SapientRazorfish: What's in a name change and a restructure? Quite a lot, actually}}
In July 2018, Publicis announced plans to sunset{{buzzword inline|date=December 2021}} the SapientRazorfish brand and roll the remaining employees under the Publicis.Sapient organization.
On February 13, 2019, Publicis announced that Publicis.Sapient, SapientRazorfish, and Sapient Consulting had become one brand, Publicis Sapient, led by CEO Nigel Vaz.
On January 14, 2020, Jem Ripley, Publicis Communications East CEO, confirmed that Publicis is bringing back the Razorfish name for its digital marketing agency, consisting of clients that didn't fit into Publicis Sapient's digital transformation strategy.{{Cite web|url=https://www.adweek.com/agencies/exclusive-publicis-groupe-is-reviving-razorfish/|title=Exclusive: Publicis Groupe Is Reviving Razorfish|last=ago|first=Erik Oster{{!}}1 hour|website=www.adweek.com|date=14 January 2020 |language=en-US|access-date=2020-01-14}}
History
=Beginnings=
Razorfish was founded in New York in 1995 by Craig Kanarick and Jeff Dachis and was originally headquartered at Dachis's apartment in Manhattan's Alphabet City. Their first major project was a $20,000 assignment to create a small website for the New York Botanical Garden, commissioned by Time Warner's Pathfinder business unit.{{cite book|url=http://www.fundinguniverse.com/company-histories/razorfish-inc-history/ |title=International Directory of Company Histories|chapter=Razorfish, Inc. History |publisher=St. James Press |volume=27 |year=2001}} A few months later, they moved into an office at 580 Broadway and hired three new employees.
=Early success=
The company generated over $300,000 in revenue in 1995 and over $1.2m in 1996, with a $300k EBITDA profit.
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 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. Razorfish, along with other New York-based Web design companies, formed the core of a cluster of New Media companies known as Silicon Alley.
In 1997, the company generated over $3.6 million in revenues, with a healthy portfolio of prestigious clients like KPMG and Charles Schwab.{{Cite web|url=http://www.company-histories.com/Razorfish-Inc-Company-History.html|title=Razorfish, Inc. -- Company History|website=www.company-histories.com|access-date=2016-04-14}}
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,{{Cite web|url=http://www.businessweek.com/smallbiz/news/date/9902/e990205.htm|archive-url=https://web.archive.org/web/19990909102741/http://www.businessweek.com/smallbiz/news/date/9902/e990205.htm|url-status=dead|archive-date=September 9, 1999|title=Melding Cultures: No Easy Task When Companies Marry|website=www.businessweek.com|access-date=2016-04-14}} London-based CHBi,{{Cite web|url=https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=13479222|title=CHBi Razorfish: Private Company Information - Businessweek|website=www.bloomberg.com|access-date=2016-04-14}} Los Angeles-based <tag> media, and then merged with Scandinavian interactive leader, Spray,{{Cite web|url=https://www.clickz.com/clickz/news/1694689/razorfish-merges-europes-spray-network|title=Razorfish Merges with Europe's Spray Network|website=www.clickz.com|date=12 August 1998|access-date=2016-04-14}} which had offices in Stockholm (Sweden), Helsinki (Finland), Oslo (Norway) and Hamburg (Germany).
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.{{Cite magazine|url=https://www.wired.com/2000/09/razorfish/|title=Brattitude Adjustment|magazine=WIRED|language=en-US|access-date=2016-04-14}}
In April 1999, the company had an IPO which raised $48 million at $16 per share.
In fall 1999, Razorfish acquired International Integration, Inc. (I-Cube),[http://news.cnet.com/Short-Take-Razorfish-acquires-i-Cube/2110-1017_3-232348.html/ Short Take: Razorfish acquires i-Cube ] CNET, November 2, 1999. a Boston-based company founded by Yannis Doganis, Madhav Anand, and Edouard (Eddie) Aslanian, its largest deal to date. The company's sales for 1999 topped $170 million.
In May 2000, Razorfish announced the launch of Intervision-Razorfish, a joint venture based in Tokyo.{{Cite web|url=http://www.adweek.com/news/advertising/razorfish-joint-venture-renamed-56154|title=Razorfish Joint Venture Renamed|website=AdWeek|date=2 May 2002 |access-date=2016-04-14}} Around the same time, as the entire industry started to feel the effects of the dot-com bubble, Razorfish saw Q4 revenues of $50.1m, a 5% drop from the year before. Total revenues for 2000 were almost $268 million. In February 2001, Razorfish laid off 400 employees, roughly 20 percent of its staff, with its stock price decreasing from a $57 high in February 2000 to just $1 per share.
=60 Minutes II interview=
In February 2000, Craig Kanarick and Jeff Dachis were interviewed by Bob Simon on 60 Minutes II. They had difficulties giving a satisfactory answer to the question, "What do you do?".[https://www.cbsnews.com/news/the-dot-com-kids/ The Dot-Com Kids] CBS News February 15, 2000. The interview was widely regarded as a complete disaster.[https://www.wired.com/2000/09/razorfish/ Brattitude Adjustment ] Wired September 1, 2000.
=Acquisition by SBI=
Razorfish was taken private by SBI Group (formerly SBI and Company) in 2003{{cite web |url=http://www.thefreelibrary.com/SBI+and+Company+Completes+Acquisition+of+Razorfish,+Inc.-a098244372 |title=SBI and Company Completes Acquisition of Razorfish, Inc. |date=March 3, 2003 |publisher=PR Newswire |access-date=February 1, 2013}} 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=
The company was renamed again, this time 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 that according to Ad Age had the highest interactive revenue in the US in 2005, at $189.8 million.[http://adage.com/article?article_id=108866 Top 50 Interactive Agencies - Advertising Age - DataCenter: Agencies] April 28, 2006 (Revised June 5, 2006)
=Acquisition by Microsoft=
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.[https://www.microsoft.com/presspass/press/2007/may07/05-18Advertising.mspx Microsoft Press Release, 18 May 2007] 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.{{ cite news |url=http://news.cnet.com/8301-10805_3-10274488-75.html |title=Microsoft to cut Razorfish loose}}
=Acquisition by Publicis Groupe=
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.{{cite news |newspaper=Financial Times | date=June 28, 2009 |title=Microsoft puts Razorfish up for sale |url=http://www.ft.com/cms/s/0/11be3c0e-641f-11de-a818-00144feabdc0.html}} On August 9, Paris-based holding company Publicis Groupe agreed to acquire Razorfish from Microsoft for US$530 million in cash and shares, which in turn gave Microsoft a 3% equity stake in Publicis Groupe.{{cite news |publisher=Wall Street Journal | date=August 10, 2009 |title=Publicis to Buy Razorfish |url=https://www.wsj.com/articles/SB124982318328817501 | first=Suzanne | last=Vranica}}{{cite news |url=http://www.dmnews.com/Razorfish-names-Bob-Lord-CEO-Kokich-to-become-chairman/article/131140/ |title=Razorfish names Bob Lord CEO, Kokich to become chairman|author=Mary Elizabeth Hurn|date=April 22, 2009|quote=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.}} 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. Pete was succeeded as the CEO by Tom Adamski and then by Shannon Denton. In October 2015, Tom Adamski died of cancer.{{cite news |url=http://adage.com/article/agency-news/razorfish-global-ceo-tom-adamski-passes/300966/ |title=Razorfish Global CEO Tom Adamski passes |date=October 19, 2015 |publisher=adage.com |access-date=July 11, 2016}}
In 2016, Razorfish merged with SapientNitro to form SapientRazorfish, led by former SapientNitro CEO Alan Wexler, who also became Co-CEO of Publicis. Sapient with and Sapient Consulting CEO Chip Register.{{Cite web|url=http://adage.com/article/agency-news/publicis-merges-sapientnitro-razorfish/306823/|title = Publicis Merges Digital Shops SapientNitro and Razorfish, Creating SapientRazorfish|date = 17 November 2016}}
References
{{Dot-com Bubble}}
Category:1995 establishments in New York City
Category:Advertising agencies based in New York City
Category:American companies established in 1995
Category:Marketing companies established in 1995
Category:Digital marketing companies of the United States
Category:2003 mergers and acquisitions
Category:2009 mergers and acquisitions