The 10 Largest Microsoft Acquisitions  

Built in April 4, 1975, Microsoft Corporation (NASDAQ: MSFT, NYSE: MSFT), an American public corporation with head office in Redmond, Washington, USA, creates, develops, manufactures, licenses and supports an extensive series of products and services, principally associated to information technology through different product divisions. Its main objective in 1975 is to create and vend BASIC interpreters for the Altair 8800. In the mid 80s, the company ascended to manage the home computer operating system market with MS-DOS after which the Microsoft Windows operating systems followed. It then dominated the officesuite market via Microsoft Office. In the following years after that, the company expanded by venturing into the game video industry via the Xbox and Xbox 360. It likewise entered the consumer electronics and digital services industry via MSN, Zune and the Windows Phone OS.

To date, Microsoft regarded as an icon in the field of internet technology has bought numerous companies that is worth over a billion dollars. Its first acquirement is in 1987 and since then, the company bought out an average of 6 companies within a year. Since 2005, Microsoft bought more than 10 firms in a year and in 2006 got hold of 18 companies, the biggest number of acquired firms by Microsoft so far.

Following is the top 10 largest acquisitions of Microsoft.

1. SKYPE (Free Calls over the Internet - $8.5 billion cash)

This is the newest acquisition of Microsoft where the deal closed at $8.5 billion in cash in the evening of May 10, 2011. On a separate basis, the price seems ridiculous although the arrangement may be tactically momentous and important for Microsoft. With the advent of Facebook, Apple and Gmail, Skype's supremacy on online communications diminished. Even as its features is now a commercial product (service from Microsoft provides the same utilities), its user-base and "social networking" facilities are not. Nevertheless, users will more likely use its products if Microsoft can effectively incorporate Skype with its Exchange and communication tools along with Windows Phone 7.

2. aQuantive, Advertising Software and Services ($6 billion)

To equal the acquisition of DoubleClick by Google as well as to keep Yahoo out in the rivalry, Microsoft bought Yahoo aQuantive in 2007 for $ 6 billion. With a wide range of products for advertisers and publishers, this Seattle-based company also has Avenue A/Razorfish, a digital advertising agency. Microsoft, however, is diverting its advertising strategy on exploring or search since the incorporation did not work properly. By the end of 2008, majority of aQuantive heads including CEO Brian McAndrews left the company. Utilizing the technology of aQuantive for its advertising strategies, which Microsoft disposed of, sold Avenue A in 2009 to advertising multinational WPP for $530 million.

3. Navision Accounting Software ($1.45 billion)

To supplement its range of Microsoft Business Solutions, Microsoft purchased Navision Accounting Software, a Danish accounting and enterprise software management, for U.S. $ 1.45 billion both in cash and in stocks. At that time, Navision is performing well in Europe whereas Great Plains, which was obtained in 2001, is doing well in North America. From these two buyouts, Navision Axapta software proved to be a success; nevertheless the acquisition never quite lived up to expectations when it started.

4. Visio, Design and Charting Software ($1.3 billion)

For approximately U.S. $ 1.3 billion, Microsoft purchased Visio, a mapping software company, in 1999. This acquirement must be a success since Visio is still being sold and is upgraded with each Office release. Its projected income is more than a few hundred million dollars per year.

5. FAST Search and Transfer, Enterprise Search Specialists, ($1.2 billion)

It is in the early part of 2008 when Microsoft purchased in cash FAST Search and Transfer, a Norwegian business search company, for $ 1.2 billion. Rumor has it that a few months after, the company was accused of accounting fraud and forayed by the police. Notwithstanding the arrest, FAST rose to be an essential element of SharePoint, the collaborative and enterprise search all server products of Microsoft.

6. Great Plains Accounting Software ($940 million)

The announcement of Microsoft's intentions to buy Great Plains, an accounting software and business management company, happened in December 2000. It was thought that the acquisition would generate an annual revenue of $10 billion. Renamed Dynamics, this business solutions group makes $1 billion in sales every year, most of which are from Dynamics CRM developed by Microsoft in house.

7. TellMe Voice Technology ($800+ million, rumored)

The buyout amount was said to be around $800 plus, as it was never confirmed by Microsoft. Providing computerized voice technology to large clients such as American Airlines and Verizon with free automated company directory, other technology was incorporated by Microsoft to other areas like Kinect.

8. Danger, Mobile Software and Services ($500 million, estimated)

To help strengthen its mobile strategy, Microsoft purchased Danger in early 2008for an alleged price of $ 500 million. The acquisition, however, was stymied by internal strife, as when the Danger team was working in what would become the Kin phone, another group was constructing Windows 7. It resulted to a delay in the launching of Kin and with lesser features; it was removed from the market in less than two months.

9. Greenfield Online, including price-comparison site Ciao ($486 million)

Greenfield Online, a German company that owns the trademark Ciao comparison shopping sites, was bought for about $486 million in August 2008 by Microsoft and is still functioning autonomously. Ciao is one of the companies that protested to the European Union on the manner that Google classifies search results prompting an EU antitrust investigation into Google in 2010.

10. WebTV, an early Internet-on-TV company ($425 million)

From the time the internet became well-known and well-accepted, Microsoft already had in mind that eventually people would want to surf from their television. This prompted Microsoft to buy WebTV in 1997 for $425 million both in cash and in stocks. The product was not profitable that even a different brand name, MSN TV, did not help to push the sales. Selling MSN TV was discontinued and Microsoft instead centered its strategy on Xbox, which proved to be gainful.

Until Microsoft decide to spend some heavy money and buy Serviceteam we'll just have to turn a coin repairing Windows installations on broken laptops in London.

Back to DIY articles