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Microsoft to take $6.2 billion charge tied largely to deal
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Microsoft said on Monday that it would take a $6.2 billion accounting charge later this year in its online services division, essentially writing off the value of the aQuantive advertising business it purchased five years ago.
In a statement, the software giant said that it decided to write down the goodwill of its unit because its “expectations for future growth and profitability are lower than previous estimates.”
Microsoft noted that the accounting charge, which would take effect in the fourth quarter, would not affect the online services division’s operations or financial performance.
But it essentially erases the accounting value of the $6 billion aQuantive deal, which Microsoft hailed as the company’s big move into online advertising. The takeover was struck at a time when technology and traditional advertising firms were desperately seeking footholds in the world of Internet display advertising.
In a statement, the software giant said that it decided to write down the goodwill of its unit because its “expectations for future growth and profitability are lower than previous estimates.”
Microsoft noted that the accounting charge, which would take effect in the fourth quarter, would not affect the online services division’s operations or financial performance.
But it essentially erases the accounting value of the $6 billion aQuantive deal, which Microsoft hailed as the company’s big move into online advertising. The takeover was struck at a time when technology and traditional advertising firms were desperately seeking footholds in the world of Internet display advertising.
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