Five interactive agencies merge to form Wirestone

Five interactive agencies are to merge to form Wirestone, a new agency with six offices and combined revenue of $20 million.

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 in San Francisco.