Why are not very significant economic losses in Microsoft?
Yesterday, Microsoft gave its financial results for the last three months just past, with relevant data to its credit: it is the first time you lose money in the company, under a figure not less than $ 492 million negative.
This has caused uproar in the public notice, however, is true to say that we are facing a bad time at Microsoft? Does this situation is an indicator that the company collapses? The answer to both questions is a resounding no.
First, we need to know what happened in the past. In 2007, the company now run by Steve Ballmer made aQuantive, an organization dedicated to digital marketing services to compete with Google in the area of online advertising. At the time, was paid $6,300 million for the purchase, with the promise of contributing to the Microsoft Online Division where the product is also Bing.
Time passed and things did not go well with aQuantive. So much so that earlier this month of July (2012) assumed that the business was a disaster and the value of the marketing company he fell, well below the $6,300 million disbursed in the first place. Following this, Microsoft had to bear the cost to repair the damage of the incident, immediately pay USD $6,200 million for this item a few days ago.
Thus, in Microsoft’s financial results is included these meager figures, and while things went wrong with aQuantive, we must not forget that in total are $18,060 million which sold a total of the company, registering just a waste of $ 492 million a after subtracting the aQuantive. That is, is not paid USD $6,200 million to repair the damage bad deal, the numbers would be different and very green. Draw your own accounts.
And investors know this, because a giant like Microsoft is forgiven waste. Symptom of what is to raise 65 cents on the value of the shares of the company hours after release with financial results. A madness? No, just getting bills, and leaving aside the expense aQuantive to do-and did-for a one-time economic reality Microsoft is very good. So good, that can give these luxuries. No doubt a reflection of the financial security they enjoy.Tags: aQuantive, Ballmer, loss, losses, Microsoft, Microsoft Online Division, money, Sale, sales, Steve Ballmer