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Microsoft Subsidiaries: The List Of Companies Owned By Microsoft
Microsoft is among the largest companies on earth, with a diversified portfolio. Owned by billionaire Bill Gates, Microsoft acquired other companies like LinkedIn, GitHub, Skype, and more, over the years. Today, Microsoft is a tech empire that spans software, social media, gaming, and more.
Bill Gates is an American business tycoon, software developer, investor, and more recently, philanthropist. After dropping out of Harvard University and founding Microsoft in 1975, Gates has at times been the richest man in the world with an estimated net worth of $129 billion. He founded Cascade Investment in 1995 to manage his investments outside of Microsoft. The firm employs over 100 people and has significant stakes in hotel, rail transport, beverage, and waste management companies. To further his philanthropic causes, he founded the Bill and Melinda Gates Foundation in 2000. The foundation holds almost $47 billion in assets and tackles entrenched global issues around poverty, healthcare, and climate change. The foundation also has several trust investments in companies such as Berkshire Hathaway, Caterpillar, FedEx, Walmart, and UPS.
Microsoft has a diversified business model spanning across Office products, Windows, Gaming (Xbox), Search Advertising (Bing), Hardware, LinkedIn, Cloud and more.
LinkedIn is a two-sided platform running on a freemium model, where to unlock unlimited search and other features, you need to switch to a paid account. Acquired by Microsoft for $27 billion in 2016, LinkedIn made $5.2 billion in revenues in 2018 and nearly 630M members by October 2019.
GitHub provides web-based hosting for software development and version control using Git, which facilitates collaborative source code development among programmers. GitHub was founded by Chris Wanstrath, P. J. Hyett, Tom Preston-Werner, and Scott Chacon in 2008. Microsoft acquired the company for $7.5 billion in 2018, and it was integrated as part of Microsoft’s enterprise offering. On top of its free repository, GitHub also offers plans for teams and enterprise customers. And the GitHub marketplace also monetizes on some of the apps developed on top of it.
Microsoft has a product-type divisional organizational structure based on functions and engineering groups. As the company scaled over time it also became more hierarchical, however still keeping its hybrid approach between functions, engineering groups, and management.
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