List of mergers and acquisitions by Microsoft

Microsoft logo

Microsoft is an American public multinational corporation headquartered in Redmond, Washington, USA that develops, manufactures, licenses, and supports a wide range of products and services predominantly related to computing through its various product divisions. Established on April 4, 1975, to develop and sell BASIC interpreters for the Altair 8800, Microsoft rose to dominate the home computer operating system market with MS-DOS in the mid-1980s, followed by the Microsoft Windows line of operating systems. Microsoft would also come to dominate the office suite market with Microsoft Office. The company has diversified in recent years into the video game industry with the Xbox, the Xbox 360, the Xbox One, and the Xbox Series X as well as into the consumer electronics and digital services market with Zune, MSN and the Windows Phone OS.

The company's initial public offering was held on March 14, 1986. The stock, which eventually closed at $27.75 a share, peaked at $29.25 a share shortly after the market opened for trading. After the offering, Microsoft had a market capitalization of $519.777 million.[1] Microsoft has subsequently acquired over 225 companies, purchased stakes in 64 companies, and made 25 divestments. Of the companies that Microsoft has acquired, 107 were based in the United States. Microsoft has not released financial details for most of these mergers and acquisitions.

Since Microsoft's first acquisition in 1986, it has purchased an average of six companies a year. The company purchased more than ten companies a year between 2005 and 2008, and it acquired 18 firms in 2006, the most in a single year, including Onfolio, Lionhead Studios, Massive Incorporated, ProClarity, Winternals Software, and Colloquis. Microsoft has made fourteen acquisitions worth over one billion dollars: Skype (2011), aQuantive (2007), Fast Search & Transfer (2008), Navision (2002), Visio Corporation (2000), Yammer (2012), Nokia's mobile and devices division (2013), Mojang (2014), LinkedIn (2016), GitHub (2018), Affirmed Networks (2020), ZeniMax Media (2020), Nuance Communications (2021), and Activision Blizzard (2022).

Microsoft has also purchased several stakes valued at more than a billion dollars. It obtained an 11.5% stake in Comcast for $1 billion, a 22.98% stake in Telewest for $2.263 billion, and a 3% stake in AT&T for $5 billion. Among Microsoft's divestments, in which parts of the company are sold to another company, only Expedia Group was sold for more than a billion dollars; USA Networks purchased the company on February 5, 2002, for $1.372 billion (~$2.22 billion in 2023).

Key acquisitions

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One of Microsoft's first acquisitions was Forethought on July 30, 1987. Forethought was founded in 1983 and developed a presentation program that would later be known as Microsoft PowerPoint.[2]

On December 31, 1997, Microsoft acquired Hotmail.com for $500 million (~$882 million in 2023), its largest acquisition at the time, and integrated Hotmail into its MSN group of services.[3] Hotmail, a free webmail service founded in 1996 by Jack Smith and Sabeer Bhatia,[4] had more than 8.5 million subscribers earlier that month.[5]

In 1999, Microsoft reportedly discussed a buyout of Nintendo. However, execs failed to negotiate a deal, with Xbox co-inventor Kevin Bachus explaining "They just laughed their asses off."[6][7][8]

Microsoft acquired Seattle-based Visio Corporation on January 7, 2000, for $1.375 billion (~$2.31 billion in 2023). Visio, a software company, was founded in 1990 as Axon Corporation, and had its initial public offering in November 1995.[9] The company developed the diagramming application software, Visio, which was integrated into Microsoft's product line as Microsoft Visio after its acquisition.

On July 12, 2002, Microsoft purchased Navision for $1.33 billion (~$2.15 billion in 2023). The company, which developed the technology for the Microsoft Dynamics NAV enterprise resource planning software, was integrated into Microsoft as a new division named Microsoft Business Solutions,[10] later renamed to Microsoft Dynamics.[11]

Microsoft purchased aQuantive, an advertising company, on August 13, 2007, for $6.333 billion (~$8.97 billion in 2023). Before the acquisition, aQuantive was ranked 14th in terms of revenue among advertising agencies worldwide. aQuantive had three subsidiaries at the time of the acquisition: Avenue A/Razorfish, one of the world's largest digital agencies,[12] Atlas Solutions, and DRIVE Performance Solutions.[13]

Microsoft acquired the Norwegian enterprise search company Fast Search & Transfer on April 25, 2008, for $1.191 billion (~$1.66 billion in 2023) to boost its search technology.[14]

On May 10, 2011, Microsoft announced its acquisition of Skype Technologies, creator of the VoIP service Skype, for $8.5 billion (~$11.4 billion in 2023).[15] With a value 32 times larger than Skype's operating profits, the deal was Microsoft's largest acquisition at the time.[16][17] Skype would become a division within Microsoft, with Skype's former CEO Tony Bates —then the division's first president —reporting to the CEO of Microsoft.[18]

On September 2, 2013, Microsoft announced its intent to acquire the mobile hardware division of Nokia (which had established a long-term partnership with Microsoft to produce smartphones built off its Windows Phone platform)[19] in a deal worth 3.79 billion euros, along with another 1.65 billion to license Nokia's portfolio of patents. Steve Ballmer considered the purchase to be a "bold step into the future" for both companies, primarily as a result of its recent collaborations. The acquisition, scheduled to close in early 2014 pending regulatory approval, did not include the Here mapping service or the infrastructure division Nokia Solutions and Networks, which will be retained by Nokia.[20][21] While the deal went through, in May 2016 Microsoft abandoned its mobile business and sold the Nokia feature phone line.

In September 2014, Microsoft purchased Mojang for $2.5 billion (~$3.17 billion in 2023).[22]

On June 13, 2016, Microsoft announced it planned to acquire the professional networking site LinkedIn for $26.2 billion, to be completed by the end of 2016. The acquisition would keep LinkedIn as a distinct brand and retain its current CEO, Jeff Weiner, who will subsequently report to Microsoft CEO Satya Nadella.[23] The acquisition was completed on December 8, 2016.[24]

On June 4, 2018, Microsoft acquired the popular code repository site GitHub for $7.5 billion (~$8.96 billion in 2023) in Microsoft stock.[25]

On September 21, 2020, Microsoft announced its intent to acquire ZeniMax Media and all its subsidiaries for $7.5 billion (~$8.7 billion in 2023). The acquisition was completed on March 9, 2021.

On January 18, 2022, Microsoft announced its intent to acquire Activision Blizzard, an American video game holding company, for $68.7 billion in cash.[26] The deal has been approved by both companies' board of directors and was finalized on October 13, 2023, with the total cost of the acquisition amounting to $75.4 billion, following international government regulatory review of the action.[27][28]

Acquisitions

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Stakes

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Divestitures

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See also

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Notes

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  1. ^ VGA-Animation Software Div was acquired from VGA.
  2. ^ Panorama Software Sys-On-Line was acquired from Panorama Software.
  3. ^ Microsoft acquired an interest representing less than 20% of Santa Cruz Operation.
  4. ^ Microsoft acquired a 26% stake in Dorling Kindersley.
  5. ^ Microsoft acquired a 2.5% stake in Mobile Telecom Technologies.
  6. ^ Microsoft acquired a 4.9% stake in CMGI.
  7. ^ Microsoft acquired an 11.5% stake in Comcast.
  8. ^ Microsoft acquired a 5% stake in Apple Inc.
  9. ^ Microsoft acquired a 10% in Progressive Networks.
  10. ^ Microsoft acquired an 8% stake in Lernout & Hauspie Speech.
  11. ^ Microsoft acquired a 10% stake in E-Stamp.
  12. ^ Microsoft acquired a 2.88% stake in WavePhore.
  13. ^ Microsoft acquired a 1.32% stake in Qwest Communications.
  14. ^ Microsoft acquired a 5.7% stake in SkyTel Communications.
  15. ^ Microsoft acquired a 7.9% stake in United Pan-Europe Comm NV.
  16. ^ Microsoft acquired a 5.25% stake in NTL.
  17. ^ Microsoft acquired a 7.5% stake in Banyan.
  18. ^ Microsoft acquired a 4.4% stake in NaviSite.
  19. ^ Microsoft acquired a 3% stake in AT&T.
  20. ^ Microsoft acquired a 6% stake in Korea Thrunet.
  21. ^ Microsoft acquired an 11.5% stake in Globo Cabo.
  22. ^ Microsoft acquired a 5.6% stake in CommTouch Software.
  23. ^ Microsoft acquired a 10% stake in Gigamedia.
  24. ^ Microsoft acquired a 1.35% stake in VerticalNet.
  25. ^ Microsoft acquired a 5% stake in Ecoss.
  26. ^ Microsoft acquired a 20% stake in RealNames.
  27. ^ Microsoft acquired a 9% stake in MEASAT Broadcast Network.
  28. ^ Microsoft acquired 22.98% of Telewest Communications.
  29. ^ Microsoft acquired 24 million preferred shares of Corel Corporation.
  30. ^ Microsoft acquired an 8.73% stake in Chyron Corporation.
  31. ^ Microsoft acquired a 10% stake in Sendo.
  32. ^ Microsoft acquired a 15.4% stake in USA Networks.
  33. ^ Microsoft acquired a 1.6% stake in Facebook.
  34. ^ Microsoft acquired a 10.52% stake in OKWave.
  35. ^ Microsoft acquired a 15% stake in Zignals.
  36. ^ Microsoft acquires minority stake in Toyota Media Service Corp
  37. ^ Microsoft acquires minority stake in 24/7
  38. ^ Microsoft acquires a 17.6% stake in Newco
  39. ^ Microsoft acquired a 4% stake in London Stock Exchange Group
  40. ^ Steve Ballmer acquired 945,000 Microsoft shares.
  41. ^ Microsoft repurchased 1.9% of Microsoft shares.
  42. ^ Microsoft repurchased 3% of Microsoft's common stock.
  43. ^ TCI Technology Ventures acquired 20% of MSN.
  44. ^ Microsoft acquired the remaining 20% stake that it did not already own in MSN from Tele-Communications Inc.
  45. ^ Technology Crossover Ventures has acquired 6% of Expedia, Inc.
  46. ^ Microsoft acquired 7.92% of its own common stock outstanding.
  47. ^ Microsoft repurchased 7.92% of its common stock outstanding.

References

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  1. ^ Monkman, Carol Smith (March 14, 1986). "Microsoft1 Stock is Red Hot on First Trading Day". Seattle Post-Intelligencer.
  2. ^ Cochrane, Nathan (May 11, 2004). "Vision of the future". The Age. Melbourne. Retrieved October 31, 2008.
  3. ^ Pelline, Jeff (January 3, 1998). "Microsoft buys Hotmail". CNET. CBS Interactive. Retrieved November 10, 2016.
  4. ^ Rajghatta, Chidanand (January 7, 1998). "Hotmail prodigy is a sizzling millionaire". The Indian Express. Archived from the original on August 3, 2009. Retrieved October 31, 2008.
  5. ^ Pelline, Jeff (December 5, 1997). "Hotmail, Microsoft talk deals". CNET. CBS Interactive. Retrieved October 31, 2008.
  6. ^ "Microsoft tried to acquire Nintendo before starting its Xbox business, but was laughed out of the room during their meeting". January 6, 2021.
  7. ^ "Microsoft has partially published the 1999 letter from their attempt to buy Nintendo". November 24, 2021.
  8. ^ "20 years ago, Microsoft reportedly approached Nintendo in a humiliating attempt to acquire the company". January 6, 2021.
  9. ^ Richman, Dan (February 7, 2000). "Jeremy Jaech enters the corporate world of Microsoft". Seattle Post-Intelligencer. Archived from the original on November 6, 2012. Retrieved June 27, 2011.
  10. ^ "Microsoft Acquires Navision". Microsoft. July 11, 2002. Archived from the original on January 4, 2009. Retrieved October 31, 2008.
  11. ^ Ngelaine, Elaine (October 4, 2005). "Solutions to dynamics". Factiva.
  12. ^ "Top 50 Digital Agencies". Advertising Age. 2007. Archived from the original on November 15, 2008. Retrieved October 31, 2008.
  13. ^ Kane, Margaret; Kawamoto, Dawn (May 18, 2007). "Microsoft to buy Aquantive for $6 billion". CNET. CBS Interactive. Retrieved October 31, 2008.
  14. ^ Weier, Mary Hayes (February 19, 2008). "Microsoft's Fast Search And Transfer Lays Out Product Roadmap". InformationWeek. United Business Media. Retrieved October 31, 2008.
  15. ^ Swisher, Kara. "Microsoft to Announce Skype Acquisition Early Tomorrow Morning | Kara Swisher | BoomTown | AllThingsD". Kara.allthingsd.com. Retrieved November 10, 2016.
  16. ^ Halliday, Josh (May 10, 2011). "Microsoft confirms $8.5bn Skype deal". The Guardian. London. Retrieved May 10, 2011.
  17. ^ "Skype price raises fears of new tech bubble". Financial Times. May 10, 2011. Retrieved May 10, 2011.
  18. ^ Bass, Dina; MacMillan, Douglas; Galante, Joseph (May 10, 2011). "Microsoft Agrees to Buy Skype for $8.5 Billion to Add Web Calls". Bloomberg. Archived from the original on May 10, 2011. Retrieved May 10, 2011.
  19. ^ Latest Video (June 1, 2011). "Nokia CEO Stephen Elop Chooses Microsoft Windows Phone OS Over Android — John Paczkowski — D9". AllThingsD. Retrieved June 14, 2013.
  20. ^ "The Next Chapter: An open letter from Steve Ballmer and Stephen Elop". The Official Microsoft Blog. Archived from the original on September 4, 2013. Retrieved September 3, 2013.
  21. ^ "Microsoft buys Nokia's Devices and Services Unit, unites Windows Phone 8 and its hardware maker". The Verge. September 3, 2013. Retrieved September 3, 2013.
  22. ^ Tsukayama, Hayley (September 15, 2014). "What is Minecraft and why did Microsoft just spend $2.5 billion on it?". Washington Post. ISSN 0190-8286. Archived from the original on September 8, 2016. Retrieved January 10, 2022.
  23. ^ Greene, Jay; Steele, Anne (June 13, 2016). "Microsoft to Acquire LinkedIn for $26.2 Billion". Wall Street Journal. Retrieved June 13, 2016.
  24. ^ "LinkedIn + Microsoft: Our Next Play Begins". www.linkedin.com.
  25. ^ "Microsoft to acquire GitHub for $7.5 billion". Stories. June 4, 2018. Retrieved June 29, 2018.
  26. ^ "Microsoft to acquire Activision Blizzard to bring joy and community of gaming to everyone across every device". stories. January 18, 2022. Retrieved January 18, 2022.
  27. ^ a b SECURITIES AND EXCHANGE COMMISSION, UNITED STATES (January 30, 2024). "MICROSOFT FORM 10-Q".
  28. ^ a b Lombardo, Cara (January 18, 2022). "Microsoft to Buy Activision Blizzard in All-Cash Deal Valued at $75 Billion".
  29. ^ Staff writer (June 20, 1986). "Microsoft Acquisition". The Wall Street Journal. Dow Jones & Company: 1 – via ProQuest.
  30. ^ Andrews, Paul (2000). How the Web was Won: How Bill Gates and His Internet Idealists Transformed the Microsoft Empire. Broadway Books. p. 97. ISBN 9780767900492.
  31. ^ "Microsoft Buys Software Unit". The New York Times. July 31, 1987. Retrieved November 16, 2016.
  32. ^ "Microsoft Corp acquires Consumers Software Inc". Thomson Financial. March 31, 1991. Archived from the original on August 3, 2009. Retrieved October 30, 2008.
  33. ^ "Microsoft Corp acquires Fox Software Inc". Thomson Financial. June 29, 1992. Archived from the original on August 3, 2009. Retrieved October 30, 2008.,,,,
  34. ^ Rosoff, Matt (March 8, 2011). "Microsoft's Biggest Acquisitions And What Happened To Them". Business insider. Retrieved March 24, 2023.
  35. ^ "Microsoft Corp acquires Softimage Co". Thomson Financial. February 28, 1994. Archived from the original on July 21, 2009. Retrieved October 30, 2008.
  36. ^ "Microsoft Corp acquires Altamira Software Corp". Thomson Financial. September 27, 1994. Archived from the original on August 3, 2009. Retrieved October 30, 2008.
  37. ^ "Microsoft Corp acquires NextBase Ltd". Thomson Financial. November 1, 1994. Archived from the original on August 3, 2009. Retrieved October 30, 2008.
  38. ^ "Microsoft Corp acquires One Tree Software". Thomson Financial. November 15, 1994. Archived from the original on August 3, 2009. Retrieved October 30, 2008.
  39. ^ "Microsoft Corp acquires RenderMorphics Ltd". Thomson Financial. February 23, 1995. Archived from the original on August 3, 2009. Retrieved October 30, 2008.
  40. ^ "Microsoft Corp acquires Network Managers PLC". Thomson Financial. July 10, 1995. Archived from the original on August 3, 2009. Retrieved October 30, 2008.
  41. ^ "Microsoft Corp acquires Blue Ribbon SoundWorks Ltd". Thomson Financial. October 17, 1995. Archived from the original on August 3, 2009. Retrieved October 30, 2008.
  42. ^ "Microsoft Corp acquires Netwise Inc". Thomson Financial. November 6, 1995. Archived from the original on August 3, 2009. Retrieved October 30, 2008.
  43. ^