Microsoft has announced the write down of $US6.2 billion on its 2007 acquisition of digital ad firm aQuantive, effectively cancelling out the software giant's projected profits for Q4.
Microsoft bought aQuantive in response to rival Google’s acquisition of DoubleClick, hoping that the purchase would boost its online advertising revenue.
Yesterday it admitted the acquisition “did not accelerate growth to the degree anticipated,” reports Bloomberg.
The company is expecting the write down to virtually wipe its entire profit for Q4, full results for which are due to be reported next week.
Prior to the write down announcement Microsoft was expected to deliver a Q4 profit of $US5.3bn.
The aQuantive purchase was Microsoft’s second biggest behind last year's $8.5bn takeover of Skype.
Microsoft shares rose 0.65 percent to $30.76 at the close of trade yesterday.
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Issue: 347 | March 2016