Translated by
2019/09/19 23:00:44

Absorption and asset sale of Microsoft

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Content

2019

Redemption of stocks for $40 billion

On September 18, 2019 Microsoft announced redemption of stocks for the amount of $40 billion. This program was approved by Board of Directors.

It is noted that the new program which has no validity period can be stopped at any time. In the fourth quarter 2019 financial year Microsoft returned to shareholders 7.7 billion dollars by means of share repurchase of stocks and dividend payout.

The Board of Directors of Microsoft approved the previous program of stock buyback in September, 2016. Its volume was also $40 billion. 

On September 18, 2019 Microsoft also announced quarter dividends in the amount of 51 cents for an action that is 11% higher, than last quarter. The company is going to hold annual shareholder meeting on December 4.

After the declaration of increase in dividends and the new program of share repurchase of stocks of quotation of Microsoft rose. On September 19, 2019 securities of the company rose in price for 2%, and market capitalization reached $1.08 trillion. It is more, than at any other public company in the world. The closest persecutor has Apple — capitalization makes slightly less than $1 trillion[1]

Purchase of the platform for the analysis of the Semmle code

On September 18, 2019 Microsoft announced Semmle acquisition to improve work of the service for joint development of IT projects of GitHub. The cost of the transaction of the company did not begin to be disclosed. Before Semmle attracted in total $31 million investments. Read more here.

Purchase of the developer of software Movere

On September 4, 2019 Microsoft announced Movere acquisition, but did not begin to disclose information on that how much this purchase cost to the company. Read more here.

Purchase of software developer for optimization of Java applications of jClarity

On August 19, 2019 Microsoft announced purchase of software developer for optimization of Java applications of jClarity. Read more here.

Purchase of the developer of marketing technologies for online retailers

At the beginning of August, 2019 Microsoft announced acquisition of the developer of marketing technologies for online retailers PromoteIQ. Read more here.

Microsoft purchased the developer of the BlueTalon platform managing data access in the companies

On July 29, 2019 Microsoft announced purchase of the developer of the BlueTalon platform managing data access in the companies. Read more here.

Microsoft invests $1 billion in OpenAI

On July 23, 2019 it became known that the Microsoft company invests $1 billion in the OpenAI non-profit organization which is based in San Francisco. The parties concluded long-term partnership on development of supercomputer technologies based on artificial intelligence for a cloud service of Microsoft Azure. Read more here.

Purchase of the developer of tools for joint work of the Pull Panda programmers

On June 17, 2019 Microsoft announced acquisition of the developer of tools for joint work of the Pull Panda programmers and is going to integrate the purchased startup with the GitHub platform. Read more here.

Purchase of the developer of technologies of digital identification Drawbridge

On May 28, 2019 Microsoft announced acquisition of the developer of technologies of digital identification Drawbridge, but the cost of the transaction did not begin to open. Technologies of the absorbed company will help the buyer to improve marketing solutions which are developed by the business social network LinkedIn entering into Microsoft and which are used by marketing specialists for advertizing creation and also for involvement of potential clients and traffic on the website. Read more here.

Purchase of the OS developer for Internet of Things of Express Logic

On April 18, 2019 the Microsoft corporation announced acquisition of Express Logic for the unnamed amount. Thanks to this purchase from Microsoft there will be three operating systems for Internet of Things — ThreadX RTOS will join Windows 10 IoT and Azure Sphere. The last in Microsoft is called the "main solution for security in the field of microcontrollers". Read more here.

Purchase of the platform for data analysis of DataSense  at BrightBytes company

On February 4, 2019 Microsoft announced purchase of the platform for DataSense data management  at BrightBytes company to expand analytical opportunities of the products used at schools, the universities and other educational institutions. Read more here.

Purchase of the DBMS developer on the basis of PostgreSQL Citus Data

On January 24, 2019 Microsoft announced acquisition of the DBMS developer on the basis of PostgreSQLCitus Data company. Read more here.

2018

Investment into the developer of processors for AI of Graphcore

In December, 2018 about $200 million investments became known of attraction of processors by the developer for Graphcore AI-applications. According to the results of this round of financing the company was estimated at $1.5 billion. Invested such large companies as Microsoft, BMW, Dell and Samsung Electronics in Graphcore. Read more here.

Purchase of the developer of technologies of a provisioning of the virtualized FSLogix jobs

On November 19, 2018 Microsoft announced acquisition of the developer of technologies of a provisioning of the virtualized FSLogix jobs. Read more here.

Purchase of the developer of chat-bots of XOXCO

In November, 2018 the Microsoft corporation announced purchase of XOXCO. For Microsoft this fourth purchase of developer AI since the beginning of year. Read more here.

Purchase of the developer of tools for simple creation of AI-applications of Lobe

On September 13, 2018 Microsoft officially announced acquisition of Lobe company. Read more here.

Investments into Hyas

At the beginning of August, 2018 it became known of investment of $6.2 million into Hyas. This round of financing was headed by the venture division of M12 entering into Microsoft. Read more here.

Purchase of offices near the headquarters for $250 million

On June 20, 2018 it became known that Microsoft purchased office complex worth about $250 million near the headquarters in Redmond. The transaction includes the Daytona Laguna complex of 725,000 square feet ( 67,354 sq.m) which Microsoft purchased at Blackstone, private joint stock company. In turn, Blackstone purchased this complex of buildings for $204 million two years before.

The new complex will allow Microsoft to expand the area of office spaces as the company is going to begin shortly an overhaul of the campus in Redmond. Though the transaction amount in itself looks impressively, actually acquisition of Daytona Laguna will add only 5% of the new area to already available campus of 15 million square feet in size.

The Daytona Laguna complex in Redmond
The Daytona Laguna complex in Redmond

However Microsoft is not going to be satisfied with what has already been achieved – the project of reorganization of a campus which the technology giant is going to start in the fall of 2018, 18 new buildings and 2.5 million square feet of new office spaces include.

Microsoft is also going to demolish twelve old buildings which do not conform to its requirements any more and to completely replace them. In general, by the time of project completion the campus numbering on the middle of 2018 of 125 buildings should increase to 231 buildings.

In Microsoft say that the innovation concept of a campus will allow to change completely life of workers and to create the most favorable conditions for work and rest – buildings in a campus will be located so that in the best way to use light day, and at construction of new premises environmentally friendly materials will be used.

Thus Microsoft is going to receive the area for 12 thousand more workers who will be able to live and work in a well-planned campus. During an overhaul the 2-akrovy platform with walking paths, the football and cricket field, the sports and leisure center, marketplaces and the underground parking will be added to it.

It is supposed that complete renovation of a campus will be complete by December, 2019.[2]

Purchase of the platform for social training of Flipgrid

The Microsoft corporation announced on June 19, 2018 purchase of Flipgrid Inc., developer company of the platform of the same name for social training. Having joined corporation, Flipgrid will save the brand, culture and a command. Read more here.

Bonsai purchase

In June, 2018 Microsoft announced purchase of the developer of artificial intelligence technologies Bonsai. The financial component of the agreement of the party was decided not to be opened. Read more here.

Semantic Machines purchase

On May 20, 2018 Microsoft announced purchase of the developer of sensing technologies of a voice Semantic Machines. Read more here.

2017

AltspaceVR purchase

At the beginning of October, 2017 the Microsoft corporation announced acquisition of AltspaceVR social network for the purpose of improvement of the projects in the field of virtual reality (VR). Read more here.

Cloudyn purchase

On June 29, 2017 Microsoft announced acquisition of cloud company Cloudyn. How many the software giant paid for this startup, officially is not reported, however, as writes the TechCrunch IT edition, it is about the amount from 50 to 70 million dollars. Read more here.

Hexadite purchase

On May 24, 2017 it became known of sale of the developer of solutions for cyber security of Hexadite of Microsoft corporation. This not first acquisition of the Israeli cybersecurity company by the American software giant. Read more here.

Intentional Software purchase

On April 18, 2017 Microsoft announced Intentional Software purchase. Due to this acquisition the software giant intends to improve Office software package. The cost of the transaction does not reveal. Read more here.

2016

Purchase of LinkedIn for $26 billion

On June 13, 2016 the American software maker of Microsoft announced purchase of LinkedIn for $26.2 billion.

The cost of the transaction which is going to be closed in 2016 will be $196 counting on one stock of LinkedIn that is 50% more in comparison with the quotations of business social network to closing of the exchange on June 10, 2016. At the same time securities of Microsoft in day of the declaration of acquisition of LinkedIn fell in price by 2.7%. Read more here.

Sale of business on release of normal mobile phones

On May 18, 2016 Microsoft announced sale business on release of normal mobile phones more than for a third of one billion dollars. This transaction will allow Nokia company to return to the world market of smartphones and tablets.

According to the statement Microsoft, the company sells all assets connected with development and production of push-button telephones of initial level, the Chinese FIH Mobile ("subsidiary" of Foxconn Technology Group) and the Finnish HMD Global for $350 million. The transaction is going to be closed in the second half of 2016, previously regulating authorities should approve it.[3]

Microsoft sells a part of telephone business for $350 million
Microsoft sells a part of telephone business for $350 million

Under the terms of the reached agreement, Microsoft will transfer to FIH Mobile and HMD Global all business concerning release of normal "mobile phones": brands, software, network of service maintenance, contracts with clients and suppliers and also production division of Microsoft Mobile Vietnam. Besides, about 4.5 thousand employees of Microsoft will pass into FIH Mobile or HMD Global.

Having got rid of production of budget mobile phones, Microsoft will focus on development operating system Windows 10 Mobile and support of the Lumia smartphones and also devices of OEM partner.

Meanwhile, Nokia announced cooperation with HMD Global, being going to resume release of smartphones and tablets under the brand. These devices will work at a software platform of Android.

HMD Global will pay Nokia interest from sales of mobile devices for use of the rights to a trademark and the intellectual property of the partner. HMD Global is also going to invest more than $500 million in promotion of gadgets of Nokia.

After closing of the transaction on sale of a part of telephone business of Microsoft to FIH Mobile and HMD Global companies by the head of the last there will be Arto Nummela, the head of division of Microsoft Devices in the countries of Asia, Africa and in the Middle East and the head of business of release of the normal Microsoft cell phones.[4]

SwiftKey purchase

On February 3, 2016 Microsoft announced acquisition of the developer of mobile applications SwiftKey, but did not set the transaction price. According to several authoritative western editions, it is about $250 million Read more here.

Xamarin purchase

On February 26, 2016 Microsoft announced acquisition of Xamarin company.

According to plans of corporation, Xamarin will give ample opportunities for development of the built-in program interfaces in the# language C for all most widespread operating systems. Such approach will help to get all advantages of.NET and to use a uniform program code for application development during the work on iOS, Android and Windows, saving the general experience of use on each of platforms.

«
We cooperate with Xamarin long ago and successfully. The solution of the company is integrated in the Visual Studio tools, the Microsoft Azure platform, Office 365 services and the Enterprise Mobility Suite system that gives to developers the convenient scheme of work for creating applications on any platform. The signature of this agreement – a new stage in development of tools and services of mobile development. The combination of Xamarin, the Visual Studio, Visual Studio Team Services and Azure will allow us to create the complete functional solution for mobile application development on any platform.
Scott Guthrie, executive vice president of the Cloud and Enterprise Microsoft group
»

Xamarin works from 15 thousand organizations in 120 countries, more than 100 of which in the list of Fortune 500. Among clients there are companies: Alaska Airlines, Coca-Cola Bottling, Thermo Fisher, Honeywell and JetBlue, SuperGiant Games and Gummy Drop.

2015

Purchase of Adallom for $320 million

On July 20, 2015 it became known of Adallom sale (the Israeli developer of means of protecting of the cloud products Microsoft Office 365, G Suite (before Google Apps), Salesforce.com, ServiceNow, etc.) to Microsoft corporation. At first this information was distributed by media, and then confirmed in a camp of software giant. Microsoft buys Adallom for $320 million cash. All 90 employees of the Israeli firm will remain to work in the country, helping Microsoft to build local business in information security field.

Sale of a part of assets

On June 29, 2015 Microsoft announced sale of some online assets. The company decided to get rid of a part cartographic and advertizing in order that it is more attention to pay to mobile and cloud computing.

According to Reuters news agency with reference to the statement of Microsoft, the company sells to service of the order of the Uber taxi a part of the division which is responsible for formation and image processing for digital maps of Bing. Will pass about 100 employees of Microsoft working in this area into Uber.

Microsoft sells a part of assets and lays off 1300 employees

Microsoft decided to sell a part cartographic and advertizing

Also Microsoft will transfer data center to Colorado, cameras, the software and licenses for the different intellectual property items connected with the cartographic direction. Financial terms of transaction are not disclosed.

Along with sale of cartographic assets Microsoft announced leaving from the market of graphic (display) advertizing. Within the 10-year agreement signed with media conglomerate AOL the last will be engaged in sale of different types of advertizing in Microsoft services, such as MSN, Outlook, Xbox and Skype.

Cooperation concerns only some countries among which there are USA, Canada, Great Britain, Brazil, Germany, Spain, Italy, France and Japan. In Belgium, Denmark, Ireland, the Netherlands, Norway, Portugal, Finland, Switzerland and Sweden the AppNexus company with which, according to the statement of June 29, 2015, partnership was expanded will direct advertizing of Microsoft.

Under the terms of the contract with AOL, from Microsoft will pass 1200 engineers and specialists in the field of advertizing and marketing into this company. Some employees will be employed in AppNexus.

Besides, since January 1, 2016 Microsoft Bing will become the main search system on all websites of AOL,  the technology of sale of declarations Bing Ads will be implemented. To the agreement with Microsoft in this market AOL cooperated with Google.[5]

Microsoft wanted to purchase Salesforce.com for $55 billion

On May 22, 2015 it became known of negotiations on merge of Salesforce.com and Microsoft. The companies could not reach the agreement because of disagreements in a financial question.

According to CNBC TV channel with reference to the sources familiar with a situation, spring of 2015 of Microsoft and Salesforce.com held "thorough negotiations" which were not closed by the conclusion the deals. The matter is that the founder and the chief executive officer of Salesforce.com Marc Benioff did not accept the price which was offered by Microsoft for purchase of the company — $55 billion Benioff expected to receive at least $70 billion.

Merger of Revolution Analytics

On April 6, 2015 Microsoft announced closing of the transaction on Revolution Analytics acquisition. The cost of purchase is not sounded. About how the software giant intends to use solutions of the absorbed firm, the corporate vice president of division of Microsoft Information Management and Machine Learning Joseph Sirosh told.

According to him, Microsoft is going to add language of statistical programming of R to SQL Server, thanks to it the company will offer fast and scalable analytics in relational database management systems which are developed in data centers, a cloud of Azure and the hybrid cloud systems.

Purchase of LiveLoop company

On March 27, 2015 it became known of purchase of Microsoft of LiveLoop company. This developer of software tools for joint work added the list of the acquisitions made by the American corporation for improvement of opportunities of Office. The price of the transaction is not set.

2010: Redemption of assets Novell

In November, 2010 the Novell company announced the conclusion of the final agreement on simultaneous sale of some assets of intellectual property of CPTN Holdings LLC, the consortium of the hi-tech companies organized by Microsoft corporation for $450 million. Copyright of the Unix operating system belonging to Novell company after sale to the company remained under control of the new owner – Attachmate companies, but as a part of other intellectual property was not sold to Microsoft.

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Notes