Ericsson is making another write-down for the cloud service company Vonage, this time by 11.4 billion kronor, according to a press release. This will impact the result after tax for the second quarter of the year by the same amount.
Ericsson purchased Vonage for 63 billion, which the management has later acknowledged was a bit too much, about two years ago. Already last year, the value was written down by 32 billion.
However, Ericsson is holding on to the fact that Vonage is an important part of the strategy, but it may take some time, unclear how long, before it becomes clear whether it was a good purchase or not.
In the press release, Niklas Heuveldop, head of the business area and CEO of Vonage, says:
"Given the deteriorated market conditions and the decisions we have made to change the investment focus to strategically prioritized areas, we have revised certain growth forecasts, resulting in a non-cash flow affecting write-down of SEK 11.4 billion."
