NEW YORK – On Monday, Microsoft Corp. lowered expectations for the growth of its internet unit and search tools after recording a depreciation of $6.2million for the value of an online advertising company they acquired five years ago.
Microsoft bought the internet advertising company aQuantive in 2007, in an attempt to compete with Google Inc’s successful earnings from search-related ads. The $6.3 million dollar purchase was the largest Microsoft has ever made at the time. Sadly, the acquisition of the aQuantitive was everything but profitable.
As a result of its annual assessment of the amount paid by the company in relation to its net assets, Microsoft said it will take a charge of $6.2 billion dollars. This proves that the acquisition of aQuantive was not the wisest decision that the company has made in terms of expanding their business.
“The acquisition did not accelerate growth to the level expected, contributing to the depreciation,” Microsoft said in a statement.
In addition to depreciation, Microsoft said its expectations for future growth and profitability of its online services unit, which includes Bing and MSN Internet portal, are lower than previous estimates.