Microsoft-Army contract for combat goggles could be worth half of $22B estimate: report
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Microsoft's (MSFT) deal with the U.S. Army for combat googles that was initially believed to be worth as much as $22 billion could be just half of that figure, Bloomberg reported.
In a press conference, the Army, discussing a report from the Pentagon's inspector general, said the $21.9 billion Integrated Visual Augmentation System contract was an estimate that was a worst-case scenario and the most the service could cost.
Microsoft (MSFT) shares fell slightly more than 1% to $277.40 in mid-day trading on Friday.
Redmond, Washington-based Microsoft (MSFT) did not immediately return a request for comment from Seeking Alpha.
In June 2021, Microsoft (MSFT) said it signed a deal with the Army, which it said at the time could be worth $21.88 billion, to provide HoloLens technology for 120,000 headsets.
At the time, the agreement was for five years, but it could be extended for another five years, Microsoft said.
In October 2021, the Army confirmed that it was delaying the field testing of Microsoft's (MSFT) augmented-reality goggles until later in fiscal 2022.
Earlier this month, it was reported that Microsoft (NASDAQ:MSFT) may soon find itself in hot water for some business practices relating to its cloud computing unit, Azure.