The five agencies merging in an all stock deal are Digital Effects, Idaho, Livewire Interactive, Seattle; Mediaphex; Priscomm, California, and Talaria Research, Sacramento.
The deal is being backed by venture capital firms with $2.5 million to develop operations and fund expansion. The new agency's client's include Hewlett-Packard, Microsoft, Sony and WebTV.
The new company will be headed by Chris Running, president and chief executive. He had previously been president and chief executive at BigBook.com in San Francisco.
This article was first published on Campaign