Microsoft acquired online advertising firm AQuantive for about $6.3 billion in 2007 to catch up with Google, but today the software giant announced it's taking a $6.2 billion writedown because the deal didn't work out as planned. The purchase of AQuantive failed to accelerate growth and didn't succeed in making Microsoft's online division profitable.
Microsoft Corp. (MSFT) (MSFT) is taking a $6.2 billion writedown for almost the entire amount it paid for Internet-advertising company AQuantive Inc., signaling that its online division will perform worse than the company projected.
The non-cash charge means the company will probably post a loss for the quarter, which ended in June. Before yesterday’s statement, analysts had predicted (MSFT) that Microsoft would report profit of $5.3 billion in the period, data compiled by Bloomberg show.