Microsoft Corporation Is Breaking Into the App Business

Microsoft CorporationMicrosoft Corporation has obtained its third mobile app start-up. The tech giant has purchased 6Wunderkinder, which is a German start-up that makes the Wunderlist to-do list app.

The financial terms were not released, however, The Wall Street Journal believes the German company was worth $100 to $200 million, which is approximately what start-ups go for currently.

Keeping an updated to-do list is the center of becoming productive. Wunderlist is extremely popular due to its cross-platform support, smooth interface, and compatibility over a wide variety of devices. Thirteen million users are registered with Wunderlist.

Microsoft Corporation

In December, Microsoft Corporation purchased Acompli, which is an email app that focuses on productivity and can be integrated with Microsoft Exchange. Microsoft Corporation rebranded the app to be their Outlook app for mobile users. Acompli was purchased for $200 million.

A couple of months later, Microsoft Corporation purchased Sunrise, which is a mobile calendar app. Microsoft paid $100 million for Sunrise. All three apps have distinctive interfaces and a clean design that is appealing to the eye.

After spending five times the amount of the three app companies for Minecraft, Microsoft Corporation is being more conservative with its spending habits. Over the past five years, Microsoft Corporation has made three large purchases, Skype, Nokia handset division and Mojang, the creator of Minecraft. The tech giant purchased Skype in 2011 for $8.5 billion, the Nokia handset division in 2013 for $7.2 billion, and Mojang in 2014 for $2.5 billion. A total of $20 billion for the three companies and with what risk?

Microsoft Corporation does not want to be haunted again like it was after purchasing aQuantive for $6.3 billion in 2007. This hurt Microsoft’s online services division (OSD). aQuantive became a part of Microsoft’s advertising division. The acquisition was supposed to bolster Microsoft’s ad business, however, the company did not perform as anticipated and it was unable to grow OSD and Bing anywhere near the expected level. The OSD is still generating operation losses, but they were $479 million in the red in 2012 compared to the $776 million the year before.

Microsoft Corporation is not looking to repeat the aQuantive experience. Goodwill and net intangible assets on the balance sheet have inflated from $13.6 billion in September 2011 before the Skype deal was settled, to $29.2 billion in December 2014, just after Mojang was acquired. Other companies were purchased by Microsoft over this same period of time, but these three big ones are the primary reason for the increase.

Microsoft Corporation

The tech giants, including Microsoft Corporation, are always closely watching out for talented, innovative developers that stand out from the generic. The tech giants are focused on having the best technology and the most intelligent people, outside-the-box type thinkers.

Microsoft is making friends in the mobile industry while still promoting Windows software for smartphones. Not very many customers are purchasing Windows based smartphones. This is the reason the company has begun purchasing apps that run on a variety of devices. There are also versions of Microsoft Office programs available for Android and iOS that were released earlier in the year by the Redmond, Washington, company in-house. All the apps that Microsoft Corporation has purchased have a free version available so customers can test drive the apps before purchasing them.

By Jeanette Smith


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