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.
Copyright © CRN Australia. All rights reserved.
Issue: 330 | August 2014
Access CRN's extensive online resources including; email bulletins, community discussions and unique online news.
Processing registration... Please wait.
This process can take up to a minute to complete.
A confirmation email has been sent to your email address - SUPPLIED GOES EMAIL HERE. Please click on the link in the email to verify your email address. You need to verify your email before you can log on to the CRN website or start posting comments on articles.
If you do not receive your confirmation email within the next few minutes, it may be because the email has been captured by a junk mail filter. Please ensure you add the domain '@crn.com.au' to your white-listed senders.