Microsoft Corporation 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 and its successor, the
Xbox 360 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 US$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. Microsoft has subsequently acquired 146 companies, purchased stakes in 61 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 1987, 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 six acquisitions worth over one billion dollars:
Skype (2011),
aQuantive (2007),
Fast Search & Transfer (2008), Navision (2002),
Visio Corporation (2000), and
Yammer (2012).
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 Communications for $2.263 billion, and a 3% stake in
AT&T Inc. for $5 billion. Among Microsoft's divestments, in which parts of the company are sold to another company, only
Expedia, Inc. was sold for more than a billion dollars;
USA Networks purchased the company on February 5, 2002 for $1.372 billion.