Microsoft facing another problem with $6.2B hit to account for ad woes | Kentips.com

Microsoft facing another problem with $6.2B hit to account for ad woes

July 4, 2012 0 Comments
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Microsoft is facing another problem right now. The company 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 failure.

On Monday, it was announced by the network that the non-cash charge could possibly burden Microsoft Corp. with a loss for its fiscal fourth quarter ended in June. According to its website, the company has not suffered any form of quarterly loss during the past 20 years, and the analysts polled by FactSet had predicted that Microsoft will earn about $5.3 billion for the period but it doesn’t seem to be happening at the moment.

Microsoft is considered to be the world’s largest software maker which is based in Redmond. The company is scheduled to release its latest quarterly results on July 19 this year, however, it is blaming the setback for the disappointing performance of aQuantive. This is the online advertising service that Microsoft brought for $6.3 billion in 200 which ended up for being a failure. This is even used to suppose to mount a more serious challenge to one of Microsoft’s biggest rivals, the Internet search leader Google Inc.

To think that aQuantive has been ranked as the most expensive deal in Microsoft’s history is definitely very disappointing and frustrating for the part of the company. It was all wasted. It was all expensive until it was eclipsed last year by the company’s $8.5 billion purchase of Internet video chat service Skype. But obviously, Skype seems to be doing great compared to aQuantive. But we cannot tell that because it is too early yet. In fact, the investors can only hope Skype works out better than aQuantive.

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