Calista Technologies
Logo since 2012 | |
| Company type | Public |
|---|---|
| Industry | Technology |
| Founded | April 4, 1975 in Redmond, Washington, USA |
| Headquarters | Redmond , United States |
Area served | Worldwide |
| Products | Software, consumer electronics, personal computers, services (including MS-DOS, Windows, Microsoft Office, Xbox, Skype, LinkedIn, GitHub) |
| Website | microsoft |
Microsoft is a publicly traded American multinational corporation based in Redmond, Washington, USA, specializing in the development, manufacturing, licensing, and support of a wide array of computing-related products and services. Established on April 4, 1975, with the goal of creating and marketing BASIC interpreters for the Altair 8800, Microsoft became the dominant force in the home computer operating system sector during the mid-1980s through its MS-DOS platform, followed by the Microsoft Windows series. The company also holds a leading position in the office suite market with Microsoft Office. Beyond software, Microsoft has expanded into gaming with its Xbox lineup and ventured into consumer electronics and digital platforms via products such as Zune, MSN, and the Windows Phone operating system.
Microsoft's shares debuted on March 14, 1986, closing at $27.75 per share with a market valuation of $519.777 million. Since then, the corporation has completed more than 225 acquisitions, invested in 64 companies, and divested 25 businesses, with 107 acquisitions originating in the United States. Specific financial details for many transactions remain confidential.
Beginning with its initial acquisition in 1986, Microsoft has averaged approximately six acquisitions annually, reaching a peak of 18 deals in 2006—including purchases like Onfolio, Lionhead Studios, and Massive Incorporated. Fourteen acquisitions have surpassed the billion-dollar mark, including notable deals such as Skype (2011), aQuantive (2007), Navision (2002), Visio Corporation (2000), Yammer (2012), Nokia's mobile division (2013), Mojang (2014), LinkedIn (2016), GitHub (2018), Affirmed Networks (2020), ZeniMax Media (2020), Nuance Communications (2021), and Activision Blizzard (2022).
In terms of investments exceeding one billion dollars, Microsoft holds an 11.5% stake in Comcast valued at $1 billion, a 22.98% interest in Telewest worth $2.263 billion, and a 3% share in AT&T amounting to $5 billion. Among divestitures, only Expedia Group sold for over one billion dollars—acquired by USA Networks on February 5, 2002, for $1.372 billion.
Key acquisitions
The company's inaugural acquisition was Dynamical Systems Research (DSR) on June 20, 1986. DSR created a DOS-based clone of IBM's TopView operating environment; Microsoft leveraged their technology and talent to enhance Windows development. The following year, on July 30, 1987, Microsoft acquired Forethought, known for developing the presentation software that evolved into Microsoft PowerPoint.
On December 31, 1997, Microsoft completed its largest acquisition at that time by purchasing Hotmail for $500 million and integrating it into its MSN platform. Hotmail was founded in 1996 by Jack Smith and Sabeer Bhatia and had amassed over 8.5 million users at acquisition.
In 1999, Microsoft sought to acquire Nintendo; however, negotiations were unsuccessful as Nintendo's executives declined the offer according to Xbox co-inventor Kevin Bachus.
On January 7, 2000, Microsoft acquired Seattle-based Visio Corporation for $1.375 billion. Visio’s diagramming software was incorporated into Microsoft's product suite as Microsoft Visio.
Microsoft purchased Navision on July 12, 2002, for $1.33 billion. The acquired technology became the basis for Microsoft Dynamics NAV within the newly formed Microsoft Business Solutions division—later rebranded as Microsoft Dynamics.
On August 13, 2007, Microsoft acquired advertising company aQuantive for $6.333 billion. Ranked fourteenth worldwide by revenue among advertising agencies at that time, aQuantive included subsidiaries such as Avenue A/Razorfish, Atlas Solutions, and DRIVE Performance Solutions.
To strengthen its search capabilities, Microsoft bought Norwegian enterprise search firm Fast Search & Transfer on April 25, 2008, for $1.191 billion.
Microsoft announced its acquisition of Skype Technologies for $8.5 billion on May 10, 2011—the largest deal to date—integrating Skype as a distinct division under former CEO Tony Bates who reported directly to Microsoft's CEO.
On September 2, 2013, Microsoft agreed to purchase Nokia’s mobile hardware division for €3.79 billion plus €1.65 billion to license Nokia’s patents; this arrangement excluded Nokia’s Here mapping service and infrastructure units. The transaction closed in early 2014; however, by May 2016 Microsoft had exited the mobile phone market.
In September 2014, Mojang was acquired by Microsoft for $2.5 billion; this purchase brought the popular game Minecraft under Microsoft's ownership.
Microsoft announced plans to acquire LinkedIn for $26.2 billion on June 13, 2016. LinkedIn continued operating as an independent brand with CEO Jeff Weiner reporting to Satya Nadella; the acquisition was finalized on December 8, 2016.
On June 4, 2018, Microsoft completed its acquisition of GitHub for $7.5 billion paid in stock.
The company declared its intention to acquire ZeniMax Media along with its subsidiaries for $7.5 billion on September 21, 2020; this deal closed on March 9, 2021.
On January 18, 2022, Microsoft announced plans to purchase Activision Blizzard for $68.7 billion in cash; following approval from both companies' boards and regulatory review processes, the acquisition was completed on October 13, 2023 at a total cost of $75.4 billion.
Acquisitions
| Date | Company | Industry | Country | Purchase Price (USD) | References | |||
|---|---|---|---|---|---|---|---|---|
| 1 |
|
Dynamical Systems Research | Operating system development | Template:USA | Template:Nts | [1] | ||
| 2 |
|
Forethought, Inc. | Software solutions | Template:USA | Template:Nts | Cite error: The opening <ref> tag is malformed or has a bad name
| ||
| 3 |
|
Consumers Software | Software products | Template:CAN | — | Cite error: The opening <ref> tag is malformed or has a bad name
| ||
| 4 |
|
Fox Software | PC database applications | Template:USA | Template:Nts | Cite error: The opening <ref> tag is malformed or has a bad nameCite error: The opening <ref> tag is malformed or has a bad name
| ||
| 5 |
|
Softimage | 3-D visualization software distribution | Template:CAN | Template:Nts | Cite error: The opening <ref> tag is malformed or has a bad name
| ||
| 6 |
|
Altamira Software | Software development | Template:USA | — | Cite error: The opening <ref> tag is malformed or has a bad name
|
| # | Date | Company | Core Business | Country | Acquisition Cost (USD) | References |
|---|
The table above illustrates Microsoft's targeted acquisitions spanning software, gaming, cloud infrastructure, artificial intelligence, cybersecurity, and professional networking industries. Among the most substantial transactions are the $8.5 billion acquisition of Skype Technologies in 2011; the $26.2 billion purchase of LinkedIn in 2016; the $7.5 billion buyout of GitHub in 2018; and the $75.4 billion takeover of Activision Blizzard in early 2022. These strategic investments have been crucial in broadening Microsoft's presence and product offerings across cloud computing, enterprise solutions, social platforms, interactive entertainment, and AI-driven technologies.
Stakes
| Date | Company | Sector | Country | Investment Amount (USD) | References | ||
|---|---|---|---|---|---|---|---|
|
Santa Cruz Operation[note 1] | Wholesale software distribution | Template:USA | — | [2] | ||
|
Dorling Kindersley[note 2] | Reference publishing | Template:UK | Template:Nts | [3] | ||
|
Stac Electronics | Data compression technology | Template:USA | align="right"| Template:Nts | style="text-align: center;" | [4] |
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Template:UUNet Internet service provision Template:USA style="text-align:center"| — style="text-align:center"| [5]
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Template:Mobile Telecom Technologies[note 3] Cellular phone technology Template:USA align="right"| Template:Nts style="text-align:center"| [7]
Divestitures
| Date | Buyer | Divested Entity | Business Segment | Buyer Location | Transaction Amount (USD) |
|---|---|---|---|---|---|
| 1989-03-31 | Steve Ballmer | Microsoft | Software distribution | USA | 46,200,000 |
| 1992-06-17 | Microsoft | Microsoft | Software distribution | USA | 63,750,000 |
| 1994-07-06 | Microsoft | Microsoft | Software distribution | USA | 348,000,000 |
| 1994-12-22 | TCI Technology Ventures | MSN | Internet service provision | USA | 125,000,000 |
| 1996-11-15 | Microsoft | MSN | Internet service provision | USA | 125,000,000 |
| 1996-12-19 | Proginet | TransAccess | Software products | USA | 1,740,000 |
| 1998-08-03 | Avid Technology | Softimage | 3D visualization software | CANADA | 284,295,000 |
| 1999-09-21 | Ticketmaster Online-CitySearch | MSN Sidewalk | Online city guide | USA | 340,000,000 |
| 2000-02-24 | Electronic Arts | DreamWorks Interactive | Video game development | USA | — |
| 2000-08-10 | Envoy Communications | Sage Information Consultants | Consulting services | CANADA | 23,730,000 |
| 2000-09-01 | Jupiter Telecommunications | Titus Communications | Cable TV services | JAPAN | — |
| 2000-12-31 | Technology Crossover Ventures | Expedia, Inc. | Online travel services | USA | 50,000,000 |
| 2001-06-26 | CNBC | MSN MoneyCentral | Financial data services | USA | — |
See also
Sources
External links
- Microsoft Investor Relations – Acquisition History
- Visual Guide to Microsoft's Extensive Acquisition Record | Techi.com
- Comprehensive Dashboard and Analysis of Microsoft Acquisitions
- ↑ Cite error: Invalid
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- ↑ "Microsoft Corp acquires a minority stake in Dorling Kindersley Ltd". Thomson Financial. March 18, 1991. Archived from the original on August 3, 2009. Retrieved October 30, 2008.
- ↑ "Microsoft Corp acquires a minority stake in Stac Electronics Inc". Thomson Financial. June 21, 1994. Archived from the original on August 3, 2009. Retrieved October 30, 2008.
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