Don Dodge blogs from the Microsoft VC summit about how and why Microsoft acquires companies.
Read the whole post for the full crunchy goodness, but here’s an extract,
Acquisitions are rarely made based on revenues or profits. The price and multiples for these types of companies are too high. Microsoft already has great brand recognition, great sales channels and partners, and existing product lines. Small acquisitions that can be leveraged across these strengths yield the highest returns.