Microsoft Hate Is Getting Very Expensive
The Mountain View-based company disclosed in a quarterly report filed late Thursday with the Securities and Exchange Commission that the 5 percent AOL stake that it bought in 2005 "may be impaired." Impairment is an accounting term used to describe an acquisition or investment that has eroded.
Unless there is an about-face, the acquiring company eventually must absorb a charge on its books to account for the diminished value of its holdings.
Google acknowledged for the first time that it might have to recognize a loss on its 5 percent stake in AOL, whose struggles have made it a financial albatross for its owner, Time Warner Inc.
Amusingly, the article is displayed on Yahoo! News. Yahoo! managed to lose a potential 13 billion dollars in shareholder value by successfully fighting off Microsoft's proposed acquisition this year. You know, a billion here, thirteen billion dollars there; pretty soon this might add up to real money. Google certainly has the wherewithal to tolerate a lot more punishment than Y! these days. Wonder who cries uncle first?