Back in 2008 we made the suggestion that Microsoft (MSFT) which was then sitting on $46 Billion should spent what we estimated would be less than $5 Billion and buy out all the top domain name portfolio’s, thereby shifting percentages of traffic away from Google for its own search engine.
Unfortunately Microsoft didn’t follow our advice.
However a few months Microsoft blew $6.3 Billion by buying aQuantive, an ad agency which was seen as a DoubleClick competitor.
I say they blew the $6.3 Billion because yesterday Microsoft announced they were taking a write off for the entire $6.3 billion dollar acquisition.
$6.3 Billion gone.
Oh and did I tell you it was an all cash transaction?
Microsoft said in a statement that “the acquisition did not accelerate growth to the degree anticipated, contributing to the write-down.”
Microsoft also said its expectations for future growth and profitability at its online services unit, which includes the Bing, are “lower than previous estimates”.
Image if Microsoft used those funds to buy the large highest quality domain portfolio’s in the world.
Instead of buying a now worthless asset they could have permanently shifted a significant amount of traffic away from Google, sending it to Bing and MSN, growing their product to the detriment of their largest competitor.
What a Shame.
What a mistake.