NEW YORK, June 28 (Reuters) - Microsoft (MSFT.O) has hired Morgan Stanley (MS.N) to sell Razorfish, its digital agency, and French marketing company Publicis Groupe SA (PUBP.PA) is thought to be a possible bidder, the Financial Times said on its Website late Sunday.

Microsoft acquired the agency, formerly called Avenue A Razorfish, as part of its $6 billion takeover of aQuantive in 2007.

The report cited an analyst valuing Razorfish at $600 million to $700 million, based on sales of about $400 million last year and profit margins for similar businesses of 12 to 13 percent.

Razorfish is one of the largest interactive advertising and marketing agencies, boasting a client list that includes McDonald's Corp (MCD.N), Starwood Hotels & Resorts (HOT.N), and Carnival Cruise Lines.

Microsoft and VivaKi, the digital arm of Publicis, last week unveiled a broad cooperation deal to develop new content, improve marketing performance and better target digital advertising audiences.