Microsoft is set to take a $US6.2 billion hit after deciding to write down the value of their advertising division which was set up to compete with Google.

The move follows a less than successful move to take on Google search with their Bing search engine which only now is starting to deliver improved results .Microsoft said the share of Internet search from its Bing unit has been increasing, and that revenue per search has also been growing.

“MSN is the number one portal in 29 markets worldwide and the company’s partnership with Yahoo! has continued to expand geographically,” Microsoft said in a statement.

The massive write down follows the 2007 acquisition of aQuantive, a digital advertising Company that has proved to be a poor investment.

“The goodwill in the Online Services Division was substantially the result of the 2007 acquisition of aQuantive,” Microsoft said.

“As a result of its 2012 impairment review, Microsoft has determined that a write down of its Online Services Division goodwill of approximately $6.2 billion is required.”

Microsoft announced the deal in August 2007 in a move aimed at seizing market share from rivals Yahoo! and Google in the lucrative market that tailors advertising to Internet search results.

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