Microsoft’s 15 Biggest Acquisitions And What Happened To Them (MSFT)
Last week, Microsoft announced it would shut down the Sidekick service for T-Mobile customers, which it got as part of its $500 million acquisition of Danger in 2008.
The shutdown put an end to Microsoft’s hopes of getting any value out of Danger, which was supposed to bolster Microsoft’s mobile phone strategy but culminated in the ill-fated Kin phone, which was canceled six weeks after launch.
But Danger was only the latest in a long line of acquisitions that didn’t go as planned.
Join us as we count them down from smallest to largest and describe the fate of each one.
Number 15: Fox database software for $174 million
Microsoft bought Fox Software back in 1992 for a reported price of about $174 million. The company made the FoxPro PC database software, and Microsoft later used its underlying technology in JET, the database engine that still powers its email product, Exchange Server. The company still sells Visual FoxPro today, making this one of the few Microsoft acquisitions that contributed lasting value.
14: Groove (and Ray Ozzie) for $171 million
Groove made peer-to-peer collaboration software, but as Bill Gates later said, Microsoft really bought Groove for Ray Ozzie, who eventually replaced Gates as Chief Software Architect.
Microsoft was responsible for $51 million of a $150 million investment in 2001 that kept Groove afloat, and in 2005 acquired the remainder of the company for $120 million, making this one of the most expensive talent acquisitions ever. Ozzie announced plans to leave Microsoft in October 2010, and sent a stark warning memo on his way out the door.
13: Placeware virtual meeting service for $200 million (estimated)
Microsoft bought this privately held virtual meeting company in 2003, and turned it into Live Meeting. Next year, Microsoft plans to phase out Live Meeting in favor of Lync Online, part of the Office 365 suite.
