Wow, even a company like MS must feel that sort of hole.

http://www.theregister.co.uk/2012/07/03/microsoft_aquantive_write_down/

Microsoft has taken a $6.2bn hit by writing down the value of aQuantive - the mega acquisition Steve Ballmer boasted would transform his company into an online advertising biz.

The Windows software giant suffered the financial blow in its fourth fiscal quarter, which closed at the end of June and the results of which are due to be announced this month. Microsoft is now expected to report a loss for Q4, which had been expected to make a $5.3bn net profit.

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Although it's one of those accounting loss things. They still made a cash surplus I imagine, so the only person really hurting from this is Uncle Sam in that MS will pay a lot less tax for the year.

Steven Ballmer is officially the worst CEO in the history of the universe

In about 3 years time they will be doing another massive write down for Skype as that company really has no material value and they spent 8 billion on that.

Suprised this took so long to post. :P

Anyways, I don't really understand this concept of writing off their value?

Guess we'll see a ~1B loss for the quarter then, not favourable, but not too bad all things considering.

Calm down, people.

All is fine, he'll still get his bonuses.

For the year they still profit 10-15 billion though

Phew! I was worried about whether he'd be able to send his kids to school next year. It's good to know they'll be OK.

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.

I think you mean buy a new school for his kids lol

When you buy something you write that value you paid as an asset. If it losses value over time, you change that asset value, and take that as a loss to pay less taxes.