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Old 08-03-2010, 10:00 PM
Ed Hansberry
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Default KIN Total Cost Nears One Billion Dollars

<div class='os_post_top_link'><a href='' target='_blank'></a><br /><br /></div><p>So just how much did the whole Danger acquistion and KIN project cost Microsoft? It looks like the total cost is approaching $1,000,000,000. Ouch. Engadged discovered there was a $240 million writeoff in Microsoft's June 30, 2010 financial statements and notes that it paid $500 million for Danger. What is not included in any of these numbers are:</p><ul><li>Routine operation expenses Microsoft incurred for the unit since the Danger acquistion.</li><li>Hardware upgrades and purchases for the Sidekick infrastructure</li><li>Revenues from the Sidekick business (that would offset any costs)</li><li>Expenses, penalties and fees incurred when the Danger servers went belly up and ate all of the Sidekick data and Microsoft had to go in and fix it</li><li>Marketing costs for the KIN</li></ul><p>All told, I suspect the venture wound up costing Microsoft over a billion dollars above any revenue it got from the Sidekick business. A billion dollars is a lot of money, but in the world of acquisitions, I suspect more money was blown when HP acquired Compaq or AOL acquired Time Warner.</p>
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