The demise of Draw Something was an expensive ordeal. One of the biggest challenges facing the company has been to diversify away from Facebook's ( META 0.26%) platform and toward mobile ones like Apple (NASDAQ: AAPL) iOS and Google (NASDAQ: GOOG) Android. A sequel has since been released, but the Draw Something franchise hasnt been a top game in quite some time and Zynga shuttered OMGPOP in 2013. Social gamer Zynga ( ZNGA) has had quite the short life in the public fast lane. Then I considered a number of factors including the magnitude of the premium paid (for publicly traded companies), how large of impairment was recognized relative to the purchase price, and how quickly management realized it just wasn't meant to be. In those cases, investors will eventually face painful goodwill and intangible asset accounting charges.įor this list, I looked at companies that announced impairments within the past five years (regardless of when the deal was initially announced). Trouble can arise if an acquirer pays too much for a target and things don't pan out as hoped. Merger and acquisition activity is important for companies to tap into new areas of growth and potentially realize cost-saving synergies in the pursuit of profit maximization. The following weren't plagued by allegations of fraud and cooked books like the Autonomy deal - just plain poor decision making and simply overpaying were the culprits here. With Hewlett-Packard ( HPQ -0.82%) recently announcing the writedown of its Autonomy acquisition just over a year after that deal closed (and after a separate impairment last quarter), it would seem that a recounting of some of the worst tech acquisitions in recent memory is in order.
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