Microsoft (MSFT) falls slightly AH after stating its Online Services division will take a $6.2B...

Microsoft (MSFT) falls slightly AH after stating its Online Services division will take a $6.2B non-cash charge, primarily related to the all-cash, $6.3B, 2007 acquisition of online ad agency aQuantive. Online Services has been posting enormous losses for years. (PR)

From other sites
Comments (8)
  • untrusting investor
    , contributor
    Comments (9903) | Send Message
    How does MSFT continually get these expensive losers? Good thing for them that have a virtual monopoly on operating systems and office suite, otherwise all these bad bets could harm the franchise.
    2 Jul 2012, 05:35 PM Reply Like
  • wigit5
    , contributor
    Comments (4365) | Send Message
    Yeah this was just a bad bet, I think they should look to drastically overhaul this department or sell it... I'm glad they tried something outside the box for them but it's clear that it isn't a winner for them.


    Every now and then you just need to know to cut your losses.
    3 Jul 2012, 10:03 AM Reply Like
  • boston8b
    , contributor
    Comments (187) | Send Message
    Maybe new leders are needed.
    2 Jul 2012, 06:48 PM Reply Like
  • JohnLocke
    , contributor
    Comments (383) | Send Message
    Maybe it is just a hussle to pull cash off the books...


    1. Buy a known stinker
    2. Push funding off one set of books onto another
    3. Cook Books to claim operating losses on both sets of books
    4. Move money off of cooked books where ever you want


    Stockholders are none the wiser...
    2 Jul 2012, 07:22 PM Reply Like
  • GSlusher
    , contributor
    Comments (1283) | Send Message
    " Maybe it is just a hussle to pull cash off the books.."


    Perhaps you didn't read the article. The write-off was NON-cash. According to my neighbor, a CPA and professor of accounting, goodwill impairment is nearly always non-cash.


    For JohnLocke and others: "Goodwill" is simply the difference between what Microsoft paid for aQuantive (and other acquisitions) and the total value of aQuantive's assets (essentially aQuantive's "book value"). When Microsoft did an analysis of this "goodwill," they determined that whatever they got from acquiring aQuantive is no longer worth as much as they paid for it. I don't know WHY Microsoft came to that conclusion, but, goodwill can be impaired because of advancing technologies (e.g., company A buys company B for B's patents and technologies, but those become outdated) or changing markets (B's products no longer sell well).
    2 Jul 2012, 10:45 PM Reply Like
  • dividend_growth
    , contributor
    Comments (2894) | Send Message
    It will write down another $8 billion in a few years for its Skype acquisition.
    3 Jul 2012, 04:40 AM Reply Like
  • rjj1960
    , contributor
    Comments (1481) | Send Message
    50 billion plus with all the purchases and cap ex, and all they have to show for it , xbox........ I have said 5 years ago msft would have been better off buying positions in big blue chip names. Do what Buffet does, after all, doesn't Gates and Buffet go out for lunch at times. Hang this mess all over Steve Ballmer, the luckiest man alive.
    3 Jul 2012, 07:05 AM Reply Like
  • Remyngton
    , contributor
    Comments (343) | Send Message
    Ballmer has to go
    12 Jul 2012, 07:19 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs