Microsoft has taken a non-cash, non-tax-deductible charge of $US6.2 billion, which effectively declared its online advertising aQuantive business worthless.
The charge is in its Online Services Division and is mostly related to Microsoft's 2007 purchase of aQuantive, for which it paid $US6.3 billion. The move writes down the value of its aQuantive business to virtually nothing.
The technology giant said in a statement: ““While the Online Services Division business has been improving, the company's expectations for future growth and profitability are lower than previous estimates.
“While the aQuantive acquisition continues to provide tools for Microsoft's online advertising efforts, the acquisition did not accelerate growth to the degree anticipated, contributing to the write down.
“Microsoft does not expect this accounting write down to affect its ongoing business or financial performance.”
Follow @AdNews on Twitter for breaking stories and campaigns throughout the day.
Have something to say? Send us your comments using the form below or contact the writer at email@example.com