Microsoft Takes $6.2B Hit To Account For Ad Woes

July 2, 2012 | By
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Microsoft is absorbing a $6.2 billion charge to reflect that one of the biggest deals in its 37-year history turned out to be a dud.

The non-cash charge announced Monday could saddle Microsoft Corp. with a loss for its fiscal fourth quarter ended in June. Analysts polled by FactSet had predicted Microsoft would earn about $5.3 billion for the period. The company hasn’t suffered a quarterly loss during the past 20 years, according to its website.

Microsoft, which is based in Redmond, Wash., is scheduled to release its latest quarterly results on July 19.

The world’s largest software maker blamed the setback on the disappointing performance of aQuantive. That’s an online advertising service that Microsoft bought for $6.3 billion in 2007 to mount a more serious challenge to one of its biggest rivals, Internet search leader Google Inc.

The aQuantive deal ranked as the most expensive deal in Microsoft’s history until it was eclipsed last year by the company’s $8.5 billion purchase of Internet video chat service Skype.

Read the whole story: AP

 

 

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Category: COMMERCE, TECH

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