We've been holding onto this story since May, when we first heard about it. Since then, we've been working to confirm Russell Simmons' possible contract with WPP's Y&R to create a new agency. So far, no such luck. But here's what we've heard.

From our spy: "...contract is in negotiation with WPP, reporting up through Y&R...Looks like the concept for the start-up agency is different from what I originally heard. It's meant to be a multi-cultural shop handling databases, analytics and execution for campaigns — translating them, so to speak, to target specific Asian, Hispanic/Latin and African American demographics...The contract for the agency is being handled by Y&R."

WPP has been uber tight-lipped about the new shop, but we hope it happens, and soon. There are few better entrepreneurs to start a shop focused on culturally diverse consumers. We'll keep you posted as more comes in.

Could this be an attempt to challenge Jay-Z's recent move to Madison Ave?

More: Hova! Hova! Jay-Z Heads To Madison Avenue

Update: "Apparently, part of Russell Simmons Communications already has an advertising agency." We wonder: is WPP buying it?