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Oct. 26, 2007 at 7:59am Eastern by Greg Sterling
Microsoft Has Huge Quarter, Online Not As Good
Because Google has been so successful financially, one tends to think of Microsoft as the underdog these days. It's not. Microsoft had a huge overall quarter, with revenue of $13.76 billion and profit of $4.29 billion. Vista appears to be selling well, despite mixed to negative reviews. So are Office and Halo 3. The Online Services Business, which houses the Internet business and online advertising, posted a 25 percent revenue gain, boosted by the aQuantive acquisition, at $671 million. But the division saw an operating loss of $264 million.
In this larger context, the $240 million invested in Facebook is really a footnote on a footnote. And Microsoft is perhaps the only one among the current and former suitors of Facebook that could afford to buy the company outright at an outrageous $15 billion if it so chose.
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By Greg Sterling
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