Microsoft to take $6.2 bln writedown for online ad service

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Microsoft has announced a 6.2 billion dollars charge to write down the value of an online advertising agency named aQuantive, which the software giant bought five years ago.

Microsoft bought aQuantive for 6.3 billion dollars in a bid to catch rival Google in the race to grow revenues from search-related advertising.

The purchase of aQuantive in 2007 was then Microsoft's biggest acquisition.

According to the BBC, the write-down effectively wipes out the acquisition's value, although there was little impact on Microsoft's share in after-hours trading on Monday.

Microsoft said in a statement that, 'the acquisition did not accelerate growth to the degree anticipated, contributing to the write-down'.

According to the report, the charge is likely to wipe out any profit for the company's fourth quarter.

Wall Street was expecting Microsoft to report fourth-quarter net profits of about 5.25 billion dollars on 19 July.