Amazon Announces Loss On LivingSocial - Business Insider
Ottway Ducard stashed this in startups
Stashed in: Amazon
The important thing here, is living social is changing the world for the better. And that the investors and entrepreneurs cash out at the top of the game. The rest, of course, is immaterial....
"First, here’s what you can glean from Amazon’s filings: We had roughly $124 million in revenue last quarter, our operating expense was approximately $193 million, and we had an operating loss of around $565 million and an overall net loss of about $566 million for the quarter.
Sounds like a lot of losses, right? Or maybe you wonder how our losses could be higher than our operating expenses? Well, what the numbers don’t fully explain is that more than 95% of our estimated losses in the quarter involved non-cash items, in particular an estimated charge of around $496 million related to the write down of “goodwill” in acquisitions we made last year and another $45 million or so related to stock compensation and other items.
In layman’s terms, we took a charge of around $496 million because we had to revalue some of the companies we acquired last year. As you know, the market has also dropped over that same time for similar public tech companies. Those changes in valuation showed up as an “impairment” in our financial statements, but they do not affect the day-in, day-out operations of the business.
Let me get this straight:
The third quarter 2012 includes a loss of $169 million, or $0.37 per diluted share, related to our equity-method share of the losses reported by LivingSocial, primarily attributable to its impairment charge of certain assets, including goodwill. To put that that into perspective, the company invested $175 million in LivingSocial. So basically, complete wipe-out.
How is LivingSocial making the world a better place?
I was being facetious. I was in that kind of mood this morning. :)