DirtyP2002 said:
Train wreck said:
zarx said:
anyone care care too fill me in on why the cost of buying a company 5 years ago is a loss this quarter? I never really "got" accounting. |
Because the preceived value that the company was supposed to bring (in terms of revenue) has never/will never materialize. So Microsoft is writing off the entire purchase and removing it from its books. Its an admission that they made a mistake in purchasing the company. Its was good for the people at aQuantive as they probably knew the company was a loser and they sold out at an extremely high price. The average selling price of companies in that space back in was ~ 1 billion, Microsoft overpaid by at least 5x.
I dont see how steve Ballmer is not fired. He is spending Microsoft money recklessly (aQuantive, Skype, supporting losers like Nokia)
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revenue of MS when Steve Ballmer became CEO: < 23 billion USD
revenue of MS now: > 70 billion USD
Number of employees when Steve Ballmer became CEO: 39k
Number of employees now: 70k
That is why.
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And then you take a look at Google and Apple and wonder where Microsoft could have been with a competent CEO.
