Microsoft Corporation acquires WebTV Networks

Microsoft Corporation acquired WebTV Networks for ~$425 million, a transaction completed in August 1997, structured as Stock and cash.

WebTV Networks operates in WebTV subsidiary (later MSN TV), is based in Palo Alto, California, USA. WebTV Networks offered an end-to-end system that delivered internet access through television sets via set-top boxes (licensed to Philips and Sony), letting consumers browse the web using a remote control. Microsoft acquired the Palo Alto company for roughly $425 million in stock and cash, operating it as a subsidiary reporting to senior vice president Craig Mundie as part of its digital-broadcasting and consumer-internet strategy.

Combine internet access with emerging digital broadcasting and bring the web to consumers via television.

This partnership with WebTV underscores our strategy of delivering to consumers the benefits of the Internet together with emerging forms of digital broadcasting.Bill Gates, Chairman and CEO, Microsoft

Advisory firms were not disclosed for this transaction.

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