Microsoft Climbs the Ladder of Success Through Mergers and Acquisitions
Microsoft Earns its Big Name Through Acquisitions

There is no doubt that we live in a time of significant economic change. Hence, businesses need to work hard to survive and achieve quality and excellence in their respective fields. Every organization aims to achieve profitable growth, and this can be possible internally as well as externally. While the internal growth can be achieved by developing new products or by expanding the capacity of existing products or making improvement in sales, the external growth can be achieved by mergers and acquisition of existing business firms. Mergers and acquisitions have become common business tools for companies who are adopting them to attain a larger asset base, to set their foot in new markets, attain a bigger market share, and become more competitive in the marketplace.

The recent years have witnessed extensive mergers and acquisitions by companies worldwide. Microsoft is one of those companies which has spent a fortune snatching up companies one after the other. It has made over 200 acquisitions in the past 30 years, with 10 acquisitions worth over one billion dollars. They include GitHub, LinkedIn, Skype, aQuantive, Navision, Visio Corporation, Yammer, Nokia, Fast Search & Transfer, and Mojang.

Microsoft announced its latest acquisition of GitHub, an open source software platform for $7.5 billion in June 2018. GitHub, is now one of Microsoft’s biggest purchase, which is just behind its $26.2 billion purchase of LinkedIn and its $8.5 billion deal for Skype. GitHub has over 28 million users and hosts more than 85 million code archives called repositories. According to Microsoft, the deal would strengthen the company’s commitment to developer freedom, openness, and innovation. Microsoft also said that GitHub would retain its developer-first ethos and would continue to run independently to offer an open platform for all developers across industries globally. Developers would continue using the programming languages, tools and operating systems of their choice for their projects. They would also be able to deploy their code to any operating system, any cloud, and any device. “Microsoft’s $7.5 billion acquisition of Github reflects the company’s ongoing pivot to open source software, seeking to further broaden its large and growing development community,” said Rick Lane, an analyst and senior vice president at Moody’s.

Prior to this deal was the acquisition of LinkedIn, the professional networking service which took place on December 2016. The aim of the acquisition was to accelerate the growth of LinkedIn as well as Microsoft Office 365 and Dynamics. The deal also gives LinkedIn the opportunity to change the way the world works. Jeff Weiner, CEO of LinkedIn said, “For the last 13 years, we’ve been uniquely positioned to connect professionals to make them more productive and successful, and I’m looking forward to leading our team through the next chapter of our story.”

Microsoft acquired Skype Technologies in 2011 for $8.5 billion with the goal of increasing the accessibility of real-time video and voice communications, bringing benefits to both consumers and enterprise users and creating new opportunities for business and revenue. The deal also extends Skype’s world-class brand and the reach of its networked platform. According to Microsoft, the deal enables the companies to create the future of real-time communications, so people can easily stay connected to family, friends, clients, and others in any part of the world.

All these acquisitions and more show that Microsoft’s effort to be at the forefront is bearing fruit and leading the company to its glory.