Microsoft to write off $6.2 billion

Jul 5, 2012 10:13 AM
Filed under Software

Misjudged acquisition.

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. 

 
Follow us on Facebook and Twitter
 

Copyright © CRN Australia. All rights reserved.

Microsoft to write off $6.2 billion
 
 
 
 
 
Top Stories
More hope for desktop PC market
Workstation shipments to jump, even though PCs down overall.
 
No easy fix to crisis in PC repair
The strife at NCSS and AWA is part of a structural problem.
 
Oracle's Larry Ellison steps down
Co-founder to move aside after 37 years.
 
Sign up to receive CRN email bulletins
   FOLLOW US...
Polls
My business strategy is to:

Latest Comments
CRN Magazine

Issue: 330 | August 2014

CRN Magazine looks in-depth at the emerging issues and developments for the channel, and provides insight, analysis and strategic information to help resellers better run their businesses.