What happened was that back in the infancy of online marketing and advertising Google decided to buy one of the biggest online ad companies there was; Double Click. I can remember seeing double click cookies and links all over the place in 2004-2008. In what was probably a kneejerk reaction Microsoft grabbed up the second largest online ad company AQuantive for a hefty $6.3 billion which, at the time, was the largest purchase that Microsoft had made.

Unfortunately after buying AQuantive Micrsooft did not seem to know what to do with them and the company stagnated and now has failed. Microsoft’s accountants (who are very good with numbers) have decided to take a “white down” for $6.3 Billion, but will be applying it to Q4 which is when Windows 8 will launch in addition to including some of the biggest shopping days of the year. This way Microsoft will be able to compensate for the difference and not post a significant loss in Q3.

They are also putting this against their Online Services Division (which is logical). Online Services is Microsoft’s biggest loss leader next to the Xbox which means that analysts will not be shocked to see this applied. Making the announcement now also lets people prepare for a potentially bad Q4. If Microsoft posts a significant loss it can all be attributed to the $6.3 billion write down and not poor sales.

We have made no secret that we are concerned that Microsoft is heading down the wrong path with Windows 8 and we could be watching the opening moves to spin any bad sales seen in November-December with a pre-planned loss already.

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