6 ms·
It'll actually end up being a tax benefit while costing them no actual red ink.
by adventureful 14y ago
It'll actually end up being a tax benefit while costing them no actual red ink.
- huggyface 14y agoMicrosoft paid $6.2 billion in cash for aQuantitive. That asset is now worthless. That is very real red ink, even though the actual accounting for it is occurring years later. It is a massive squandering of assets.
- raverbashing 14y agoCan we say "congrats MS"!? A mix of desperation, and having no idea of what you're doing. Hats off for Steve Ballmer Goog payed 2B for DoubleClick right? Funny thing is that "everybody knew" who DoubleClick was, but I'd say it was hard to find someone to have hear about aQ before the acQuisition.
- Of_Prometheus 14y agoWhat a bitter comment. The fact that you believe someone with over two decades' worth of experience has no idea what he's doing illustrates just how seriously one should be taking your opinion.
- steve8918 14y agoNo. Writing down a loss on a purchased company is not a taxable benefit at all. They are writing off goodwill and intangible assets which were acquired when they purchased a company, and this has no tax consequences. Maybe if they wrote off tangible assets, they could accelerate the depreciation, but it's most likely that all of the write down is in goodwill and maybe intangible assets.
- _delirium 14y agoThere are some cases in which you can write off intangible assets as "abandoned", but it's complex. A brief bit discussed in these two articles: http://www.cbiz.com/page.asp?pid=8872 http://www.cbiz.com/page.asp?pid=8872, http://www.cbiz.com/page.asp?pid=8984 http://www.cbiz.com/page.asp?pid=8984
- rprasad 14y agoIt may provide a tax benefit offsetting the sales of Windows 8 this year, but it will definitely cost them a lot of red ink.