The Scoop...

The old-time Internet agency

AGENCY.COM has come a long way since Chan Suh and Kyle Shannon co-founded the company with $80 in 1995, the Jurassic Age of the Internet. Today, AGENCY.COM is the largest company in the world offering Web creation, advertising and consulting services. Omnicom, the advertising conglomerate, took an interest in AGENCY.COM through its interactive services unit, Communicade, purchasing a 40 percent share in the company. Omnicom's support also extended to AGENCY.COM competitors Organic, Razorfish and Think New Ideas (then called Onramp and now a part of answerthink). A series of acquisitions over the past six years have added offices and skill sets: Spiral Media in NY, Online Magic in London, Ketchum Interactive in San Francisco, Interactive Solutions and Quadris in Boston, Eagle River Interactive in Chicago, The EDGE Consultants in Singapore, and Pictoris Interactive, a French interactive agency.

Purchasing power

However, in May 2001, AGENCY.COM found itself the acquired party. As they announced the firm's Q1 2001 earnings, the founders also announced that they had reached an agreement with Seneca Investments, a new e-services holding company established by Omnicom and Pegasus Partners. Seneca will purchase all the founders' shares - although the two will remain at AGENCY.COM as employees. Seneca will also hold Omnicom's stake in the company, adding up to approximately 65 percent. To take this a step further, Seneca has made a proposal to acquire all remaining shares in the company. This proposal has been passed along to a Board committee consisting of independent members of AGENCY.COM's Board of Directors for approval.