The bookkeeping cost, called a write-down of good will, was basically a write-off of the value of aQuantive, a electronic promotion organization that Ms purchased in 2007. It will take effect in the fourth quarter, Ms said in a declaration.
The organization said it took the write-down because "expectations for future growth and success are lower than previous estimates" for the on the internet solutions unit.
The cost will not affect the on the internet solutions division's functions or financial performance, Ms said.
"It's frustrating, but it is not a shock at this point," said Brendan Barnicle, mature research specialist at Hawaiian Crest Investments. "The industry has progressed beyond where aQuantive was when Ms purchased it."
Microsoft does earn money in on the internet promotion, but has used a number of electronic promotion relationships.
The cope for aQuantive was hit when technology and traditional promotion firms were seriously seeking footholds in the world of Internet banner promotion. At time, aQuantive was the greatest organization Ms had purchased in its history.
A 30 days before the aQuantive purchase, Search engines, Windows big competing in on the internet promotion, purchased a identical firm, DoubleClick, for $3.1 thousand. That cope has been extremely successful for Search engines, experts say.
other part of the banner promotion company across the Web. Once extremely successful by simultaneously stiThe purchase of aQuantive may well have been driven by stress Ms was feeling at time, not only from the DoubleClick cope, but by identical products by other organizations. Ms purchased aQuantive one day after the WPP Group purchased 24/7 Real Press, another electronic promotion organization, for $649 thousand, and monthly after Google decided to pay $680 thousand for Right Press, an on the internet ad exchange.
All of the products were in one or ancking electronic ads across the boundaries of millions of Web pages, the company has become under stress as organizations like Search engines got better at seeking for individual preferences with search promotion.
