Image may be NSFW.
Clik here to view.Microsoft’s expensive aQuantive acquisition back in 2007 has turned into a washout, with the company taking a $6.2bn cash write down on the $6.3bn purchase. The move is expected to wipe out Q4 profits, which the street was forecasting at c$5.25bn.
Microsoft bought the company in order to gain a foothold in the digital advertising market at about the time Google bought DoubleClick, and other players like Yahoo and WPP were making similar acquisitions. But while Google developed its acquisition and used it to move into personalised and search based advertising, Microsoft stuck to the more traditional strategy of display advertising and advertising partnerships. Failure to spot and act on the change in the market has cost Microsoft dearly.
The acquisition has been tagged a ‘me too’ purchase. Those vendors forming the current rush to buy into social media marketing (see the HotViews archive here) should take note.