Avenue A/Razorfish

Microsoft is in talks to sell online ad firm Avenue A/Razorfish to WPP Group, Advertising Age reports. Microsoft inherited Avenue A with its $6 billion aQuantive purchase in 2007.

Avenue A is currently estimated to be worth $800 million, and it is not immediately clear why Microsoft wishes to unload it.

In exchange for the company, WPP may offer Microsoft its ad-serving tool, Open AdStream; plus cash. WPP absorbed AdStream with its $649 million purchase of 24/7 Real Media, mirroring the means by which Microsoft came to own Avenue A. (Both companies were also criticized for overpaying for their purchases.)

The 24/7 deal availed WPP to a search engine marketing business with a large China-based clientèle, a market the company is apparently intent on focusing upon. Today it announced its purchase of a minority stake in IGA Limited, the parent company of InGame Ad Interactive Technology. The latter is a leading dynamic in-game ad network in China.

Shares of Microsoft fell 0.3 percent, or nine cents, to $27.75 this morning.