What Are The Reasons Behind Microsoft's Successive Mergers And Acquisitions?

Microsoft announced the purchase of video and audio education platform Flipgrid in June 19th, but it did not reveal the amount of money. It seemed unsurprising that it was a single news, but in fact, Microsoft had bought 7 billion 500 million dollars for the open source project platform GitHub, even at the end of the 2018 E3 video game, and bought 4 game studios at one breath, including Nin. Ja Theory, Playground Games, Undead Labs, Compulsion Games, large and small mergers and acquisitions immediately let the outside world curious about the reason behind Microsoft's big acquisitions.

Zack website believes that there may be three reasons for Microsoft's merger. First of all, Microsoft continues to reduce the importance of PC business. The PC industry has entered a market maturity. It is a alarm for Microsoft, which is creating a software kingdom of PC. The company is constantly adjusting PC business, the most obvious of which is to allow users to upgrade free Windows 10 for a time, and the focus of PC business is transferred to other software, such as Office 365. Although "More Personal Computing" revenue still ranks the top three of Microsoft's business, the market growth kinetic energy is not on the sales figures of the OS software. In the recent development of Microsoft, cloud demand is the most important business of the company.

The Zack website believes that Microsoft has now developed more like Google, relying on a large number of Tech umbrella to protect the core business, which is why Microsoft has to continue to expand its multicomponent business, and is betting on new businesses that are expected to stimulate growth, such as GitHub or independent game studios.

Second, buying and creating new ventures is a shortcut to the gap between competitors, especially when Microsoft comes into contact with new ventures, and buying Flipgrid is a clear example. Education market is not Microsoft's strange business, but in addition to the open Office 365 for the use of school users, Microsoft has no new education technology (edtech) as a video content platform to counterbalance Google Classroom or ConnectED of apple (Apple), so Flipgrid becomes one of the advantages of Microsoft bend road overtaking. What's more, Flipgrid, which has 20 million members, originally used Amazon's AWS service. Now it has become the user of Microsoft Azure.

Finally, Zack web site analysis, the increasing number of mergers and acquisitions is becoming increasingly representative of the industrial technology turning point, especially for technology giants, the mastery of new technologies and hot applications is one of the doors to drive their business growth, such as artificial intelligence (AI). AI application prospects are available, such as self driving, Natural Language Processing, robotics, and so on. Microsoft needs to find its development orientation in AI technology to cope with the possible exponential growth trend in future related applications. It is clear that open source software and App applications (GitHub), edtech (Flipgrid), competition Entertainment (Game Studio) are Microsoft The good application market also makes the acquisition activities more representative.