Microsoft in $6.2bn write-down of aQuantive - GoFuckYourself.com

DVTimes · 07-02-2012, 05:07 PM

Microsoft is taking a $6.2bn (£4bn) charge on the value of an online advertising firm bought five years ago.

Microsoft bought aQuantive for $6.3bn cash in an attempt to catch rival Google in the race to grow revenues from search-related advertising.

The write-down effectively wipes out the acquisition's value, although there was little impact on Microsoft's share in after-hours trading on Monday.

The purchase of aQuantive in 2007 was then Microsoft's biggest acquisition.

The company said in a statement on Monday that "the acquisition did not accelerate growth to the degree anticipated, contributing to the write-down".

The charge is likely to wipe out any profit for the company's fourth quarter. Wall Street was expecting Microsoft to report fourth-quarter net profit of about $5.25bn on 19 July.

In addition to the charge, Microsoft said its forecast for future growth and profitability at its online services arm - which includes the Bing search engine and MSN internet portal - are "lower than previous estimates."

http://www.bbc.co.uk/news/business-18684395

Klen · 07-02-2012, 05:14 PM

Another company for which i never heard.

L-Pink · 07-02-2012, 05:15 PM

Well that was overvalued ... 6 billion? Haha

Klen · 07-02-2012, 05:44 PM

Found this original article about buying:
http://techcrunch.com/2007/05/18/mic...for-aquantive/
Seems they paid like 12 years revenue.Crazy considering in adult sites are usually sold for 6 month revenue.

07-02-2012, 05:07 PM	#1
DVTimes xxx Industry Role: Join Date: Jun 2003 Location: UK Posts: 31,547	Microsoft in $6.2bn write-down of aQuantive Microsoft is taking a $6.2bn (£4bn) charge on the value of an online advertising firm bought five years ago. Microsoft bought aQuantive for $6.3bn cash in an attempt to catch rival Google in the race to grow revenues from search-related advertising. The write-down effectively wipes out the acquisition's value, although there was little impact on Microsoft's share in after-hours trading on Monday. The purchase of aQuantive in 2007 was then Microsoft's biggest acquisition. The company said in a statement on Monday that "the acquisition did not accelerate growth to the degree anticipated, contributing to the write-down". The charge is likely to wipe out any profit for the company's fourth quarter. Wall Street was expecting Microsoft to report fourth-quarter net profit of about $5.25bn on 19 July. In addition to the charge, Microsoft said its forecast for future growth and profitability at its online services arm - which includes the Bing search engine and MSN internet portal - are "lower than previous estimates." http://www.bbc.co.uk/news/business-18684395 __________________ The Affiliate Program

07-02-2012, 05:14 PM	#2
Klen Industry Role: Join Date: Aug 2006 Location: Little Vienna Posts: 32,235	Another company for which i never heard.

07-02-2012, 05:15 PM	#3
L-Pink working on my tan Industry Role: Join Date: Mar 2005 Location: Florida/Kentucky Posts: 39,151	Well that was overvalued ... 6 billion? Haha

07-02-2012, 05:44 PM	#4
Klen Industry Role: Join Date: Aug 2006 Location: Little Vienna Posts: 32,235	Found this original article about buying: http://techcrunch.com/2007/05/18/mic...for-aquantive/ Seems they paid like 12 years revenue.Crazy considering in adult sites are usually sold for 6 month revenue.