Microsoft in $6.2bn writedown 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 writedown effectively wipes out the acquisition's value, although there was little impact on Microsoft's shares 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 writedown".

          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".

 

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