Blog Post

Microsoft’s Acquisitions In The Last Fiscal Year: Total $689 Million

This is from its latest 10-K, filed Friday:
During the fiscal year 2006, we acquired the following entities for a total consideration of $689 million, which was primarily paid in cash:
— Frontbridge Technologies, Inc., a California-based provider of managed services that addresses corporate e-mail compliance, security, and availability requirements;
— Teleo, Inc., a California-based voice over Internet protocol software and services provider;
— AG, a Zurich, Switzerland-based developer of PC-based voice over Internet protocol communication systems and peripheral equipment;
— Lionhead Studios Ltd., a Guildford, England-based software studio specializing in PC game development;
— Vexcel Corporation, a Colorado-based imagery technology and systems provider;
— Massive Corporation, a New York-based developer of video game advertising;
— ProClarity Corporation, an Idaho-based developer of advanced analysis and visualization technologies for business platforms; and
14 various other entities specializing in areas such as application security, digital access management, and networking solutions.
As a result of these acquisitions, we recorded $592 million of goodwill. None of that amount is expected to be deductible for tax purposes. Goodwill was assigned to our operating segments as follows: $29 million to Server & Tools, $263 million to MSN, $31 million to Client, $246 million to Information Worker, and $23 million to Home and Entertainment.