Microsoft takes $6.2B charge



Microsoft's acquisition of aQuantive has not generated any profit in the last quarter.

Microsoft has admitted that one of its largest acquisitions ($6.2 billion) has not reported any benefits in the last quarter. We are talking about aQuantive, one advertising company that the big M purchased to combat Google Inc's advertising company DoubleClick.

According to TheTorontoSun:

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 $6.2 billion US 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.

Microsoft's shares dipped slightly to $30.28 in after-hours trading, after closing at $30.56 in regular Nasdaq trading.

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."
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NEWS SOURCE: Microsoft takes 62b charge slows internet hopes (via) TorontoSun

Our thanks to 'Kaos2K' for this news item!