REDMOND, Wash., and PALO ALTO, Calif., Aug. 1, 1997 — Microsoft Corp. and WebTV Networks Inc. today announced the completion of Microsoft’s acquisition of WebTV for approximately $425 million in cash and stock.
Under terms of sale, originally announced April 6, WebTV Networks will operate as a subsidiary of Microsoft and retain its offices and staff in Palo Alto.
“Now the real work begins,”
said Craig Mundie, senior vice president, consumer platforms division at Microsoft.
“Consumers will have lots of choices when it comes to Internet TV devices, so we’re going to be working around the clock to make our products the best choice. WebTV already is a compelling technology and, by combining WebTV with Windows® CE-based technologies in future versions, we expect to make it even better.”
“This is a great day for all of us at WebTV,”
said Steve Perlman, co-founder, president and CEO of WebTV Networks.
”
This deal validates our vision for this emerging market, as well as all the hard work and long hours that everyone at WebTV has put in during the past two years.
“We’re excited to be part of Microsoft, and we look forward to many opportunities and challenges as we focus on moving the television experience forward for consumers,”
said Perlman, who will remain CEO of WebTV, managing the subsidiary as a part of Microsoft’s consumer platforms division, and will report to Mundie.
Microsoft and WebTV officials announced the proposed acquisition on April 6 at the annual National Association of Broadcasters convention. Because of its size, the transaction was subject to government review under the Hart-Scott-Rodino Act of 1976.
“A significant number of players, both large and small, are focused on this emerging business opportunity. As a result of all this competition, consumers can look forward to rapid innovation and great value in Internet-enabled TV devices,”
Mundie said.
Founded in 1975, Microsoft (NASDAQ
“MSFT”
) is the worldwide leader in software for personal computers. The company offers a wide range of products and services for business and personal use, each designed with the mission of making it easier and more enjoyable for people to take advantage of the full power of personal computing every day.
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