Microsoft admits purchase worthless
Source: Agencies |
July 4, 2012, Wednesday
|
Print Edition
Print Edition
MICROSOFT Corp admitted its largest acquisition in the Internet sector was effectively worthless and wiped out any profit for the last quarter, as it announced a US$6.2 billion charge to write down the value of an online advertising agency it bought five years ago.
The announcement came as a surprise, but did not shock investors, who had largely forgotten Microsoft's purchase of aQuantive in 2007, which was initially expected to boost Microsoft's online advertising revenue and counter rival Google Inc's purchase of digital ad firm DoubleClick.
The world's largest software company said in a statement that "the acquisition did not accelerate growth to the degree anticipated, contributing to the write-down."
Microsoft bought aQuantive for US$6.3 billion in cash in an attempt to catch rival Google in the race for revenues from search-related display advertising. It was Microsoft's biggest acquisition at the time, exceeded only by its purchase of Skype for US$8.5 billion last year. But it was not a success and aQuantive's top executives left Microsoft.
As a result of its annual assessment of goodwill - the amount paid for a firm above its net assets - Microsoft said on Monday it would take a non-cash charge of US$6.2 billion, indicating the aQuantive deal is now worthless.
The charge will likely wipe out any profit for the firm's fiscal fourth quarter.
The announcement came as a surprise, but did not shock investors, who had largely forgotten Microsoft's purchase of aQuantive in 2007, which was initially expected to boost Microsoft's online advertising revenue and counter rival Google Inc's purchase of digital ad firm DoubleClick.
The world's largest software company said in a statement that "the acquisition did not accelerate growth to the degree anticipated, contributing to the write-down."
Microsoft bought aQuantive for US$6.3 billion in cash in an attempt to catch rival Google in the race for revenues from search-related display advertising. It was Microsoft's biggest acquisition at the time, exceeded only by its purchase of Skype for US$8.5 billion last year. But it was not a success and aQuantive's top executives left Microsoft.
As a result of its annual assessment of goodwill - the amount paid for a firm above its net assets - Microsoft said on Monday it would take a non-cash charge of US$6.2 billion, indicating the aQuantive deal is now worthless.
The charge will likely wipe out any profit for the firm's fiscal fourth quarter.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
