microsoft aquantive Microsoft writes off $6.2 billion over 2007 acquisition

Microsoft has written off a whopping $6.2 billion after admitting that one of its largest acquisitions, made five years ago, was essentially worthless.

Microsoft has written off a whopping $6.2 billion after admitting that one of its largest acquisitions, made five years ago, was essentially worthless.

 
The software giant bought aQuantive, an advertising agency, in 2007, hoping to compete with Google after it bought DoubleClick. It was the largest acquisition in the company's history at the time, with $6.3 billion spent, dwarfed only by the $8.5 billion it spent on Skype last year.
 
The deal failed to deliver, however, with Microsoft still lagging behind its rivals in the advertising market and many of aQuantive's executives moving on to greener fields.
 
microsoft aquantive Microsoft writes off $6.2 billion over 2007 acquisition
 
It took five years for Microsoft to admit its failure, announcing to investors that it would take a “non-cash charge” of $6.2 billion, almost the entire amount spent on the ill-fated acquisition.
 
The decision will have a significant affect on the company's profits this year, and particularly for the company's fiscal fourth quarter. Microsoft is expecting to turn a net profit of $5.25 billion, almost guaranteeing the company will lose money this quarter.
 
The dire news for Microsoft does not end there, however, as it also admitted that some of its other products are not performing so well, including Bing and MSN, which it said will return lower than previously estimated growth and profits.
 
Source: Reuters