Lower than forecast handset sales could lead to a multi-billion dollar write off for Microsoft

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The $ 7.2 billion acquisition of Nokia Devices and Services announced by Microsoft on September 2, 2013 turned into a $ 9.4 billion deal by the time it closed. The guys working in Redmond on the financial aspects of the deal, considered $ 5.5 billion of the purchase price to be Goodwill. That is the amount of the cost of an acquisition that consists of intangible assets like the value of a company’s name, good customer and employee relations, patents and proprietary technology. Another $ 4.5 billion of intangible assets not considered Goodwill was also part of the deal.

The danger is that if …