New York (CNNMoney )-deals are just-their not-very-good is really sometimes and not work in some business.
Microsoft is cash online display company aQuantive for $ spent buying 6300000000 ad in 2007. Taking a write-down of $ 6200000000 on Monday, wrote a little company gets off entire value.
Since buying aQuantive is Microsoft's online advertising business in five years wildly unprofitable remains. But in the last quarter of Microsoft's Online Services Division, almost lost half 1 billion dollars the company. Division's losses to $ 2 billion almost reached 12 months past.
"Accelerated acquisition growth forecasts, some continue to provide tools for the AQuantive acquisition Microsoft online advertising effort, while not" a modest press release and Microsoft.
Microsoft (MSFT, Fortune 500) has advertising business said the "improvement", the company also said Monday that and expected low about the unit's ability to grow and serve the interests section.
Since with the money, Online Services Division, began Microsoft unit financial violations five years ago the software giant, lost about $ 10400000000.
In other words, Microsoft is nowhere near the wider Internet industry's leading advertising platform bought aQuantive which predicted a President Kevin Johnson at the time when Microsoft services. After rival AQuantive was already almost devoured competitors Microsoft paid 85% of premium shares.
Johnson became the CEO of Juniper Network ( Sunnyvale ).
Good fit for AQuantive, Microsoft's ads stems from not Microsoft haven't found that Google (GOOG, Fortune 500) struggle for most of the company's business online search race to catch up.
Bing, online data Tracker comScore (SCOR) according to share of the search market does 15.4% 8.4% maintenance, startup Bing, Microsoft's search engine will. It is a nice jump but held by the 1.7 points market commands - Bing when you debut Google still 66.7% from 65%.
Most of bing is actually come from ( Fortune 500 YHOO ) Yahoo share of third place. The rest comes from Ask.com and AOL (AOL) search cellar dweller.
Don't usually like that "bad" market share growth that Yahoo search is now powered by bing. In other words, more is coming from cannibalizing the search partner half Microsoft share growth.
To capture the attention of the critical mass of interests - ads - 10 minutes to say Bing search market analysts have need at least 25 to 30 percent of the market. It is a double Microsoft's current market share
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