Thursday, March 16, 2006

SuperGroup Denuo's Pahade Interviewed

Zach at ClickZ has an interview with Nick Pahade, the president of Denuo: Publicis' new group of really smart people. He asks some great questions, including:

Q. One of the unique things about Denuo is how you're acquiring stakes in new media and tech companies in exchange for helping develop their ad products. What companies do you have a stake in now?


Q. Does the services for capital approach sort of hearken back to Web 1.0?

The whole "equity for work" gig is a tough one, and I'm convinced it contributed to the downfall of some very good agencies back in the day. The agency that I worked at (Red Sky) always said no to these deals, but not necessarily out of any nobility--more like we needed the cash in now!

It certainly says a lot for the company that can do it: they are placing real bets on the development of certain technologies. But I'd watch this fairly closely. I don't know if these investments will ever show up on a public accounting, but this is the sort of thing that first of all invites every one with an idea to come to your door, and potential difficultly in paying the very real expenses associated with an agency. Publicis' backing will make it easier, but the balance has to be pretty delicate.

Check out Nick's answer to those questions.
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