Microsoft acquires a leading mobile analytics startup, raising $1.8 billion
Microsoft has acquired a leading analytics company called Hootsuite, raising a total of $1,8 billion.
The deal, announced Tuesday, comes as Microsoft continues to grapple with slowing revenue growth and the continued rise of artificial intelligence, which is increasingly able to spot errors and give users better ways to track their activity.
It also comes as the company continues to battle with Apple for a dominant position in the mobile analytics market.
Microsoft is also looking to broaden its mobile presence with acquisitions in China and India.
HootSuite, a startup with more than 40 million users, has a market value of about $10 billion, according to Bloomberg data.
Its business was valued at $1 billion in the first quarter of 2017.
Microsoft CEO Satya Nadella, who is also the chief operating officer of Nokia, has made AI a central part of his business strategy, saying it could help him keep the company focused on its core business.
Microsoft announced the deal in a blog post announcing the deal, saying: “We’re excited to add another world-class mobile analytics company to our team.
We believe that HootSUite’s technology will enable Microsoft to become a leader in mobile analytics.
We look forward to working with Hoot’s CEO, Eric Sperling, and our other Nokia-owned and partner companies to further accelerate the growth of our mobile analytics ecosystem.”
Microsoft, whose software analytics business has been the subject of criticism by Apple and others, also announced a $500 million funding round last year.
Microsoft acquired Hoot in August 2016 for $300 million, just weeks after the company raised $500.4 million from Chinese investors in an effort to accelerate its growth in mobile technology.
The new acquisition, the first of its kind, was not announced in the announcement that Microsoft made to announce the deal.