Posts tagged "aquantive"

Microsoft accounts for its online division’s suffering

Microsoft acknowledged on Tuesday that one of its biggest acquisitions in the Internet, aQuantive, is almost devoid of value.

The software giant admitted in a statement that “despite the acquisition of aQuantive continues to provide tools for Microsoft’s advertising efforts, this purchase did not accelerate growth to the extent expected.” Microsoft acquired aQuantive in 2007 for $6,300 million in response to Google, which bought online advertising company DoubleClick.

The Redmond giant was looking to expand the operation with its graphical advertising revenue related to the searches, reports Reuters, recalling that aQuantive was Microsoft’s largest acquisition to date, second only after the purchase of Skype by $8,500.

The company headed by Steve Ballmer has acknowledged that, despite the improvement experienced by the income of the online services division, which includes Bing (who has experienced a gain in market share) and the MSN portal, “expectations on future growth and profitability are lower than expected. ” Thus, according to Bloomberg, the non-cash charge probably means that the company will announce a loss for the quarter ending in June. Wall Street had expected Microsoft to submit quarterly net income of about $5,250 million, or 62 cents per share, on July 19.

Analysts like Colin Gillis of BGC Partners LP say, “online services remain the biggest drag on the company right now.” Still, Gillis continues to recommend the purchase of Microsoft. The company’s shares closed yesterday with a rise of 0.65% to $30.76, bringing annual earnings up 18.49%.