The Microsoft Acquisition Timeline: From Skype to Activision
Microsoft has spent over $200 billion on acquisitions since 2011. From Skype to LinkedIn to Activision Blizzard, trace how Microsoft built its modern empire.
$200 Billion in Acquisitions
Microsoft is the second most valuable company in the world by market capitalization. But the Microsoft of 2026 looks radically different from the Windows-and-Office company of the early 2000s. That transformation was driven largely by acquisitions, over $200 billion worth since 2011.
Under CEO Satya Nadella (who took over in 2014), Microsoft has made some of the most consequential technology acquisitions in history: LinkedIn for $26 billion, GitHub for $7.5 billion, and Activision Blizzard for $69 billion. Each deal expanded Microsoft into new markets and reshaped entire industries.
This timeline traces Microsoft's major acquisitions, explains the strategic logic behind each deal, and assesses which bets have paid off.
The Complete Acquisition Timeline
2011: Skype - $8.5 Billion
Microsoft's acquisition of Skype was the company's largest deal at the time and signaled Microsoft's ambition to move beyond traditional software.
What Microsoft got: The world's most popular video calling platform with 170 million connected users.
What happened next: Microsoft integrated Skype into its enterprise offerings and eventually replaced it with Microsoft Teams for business communications. The consumer Skype product gradually declined as competitors like FaceTime, WhatsApp, and Zoom gained ground. Microsoft retired the standalone Skype brand in 2025, fully merging its capabilities into Teams.
Verdict: Mixed. Skype's technology informed Teams, which became hugely successful. But the Skype consumer brand was not effectively maintained.
2014: Minecraft (Mojang) - $2.5 Billion
Microsoft acquired Mojang, the Swedish studio behind Minecraft, for $2.5 billion. Many questioned the price for a single game studio.
What Microsoft got: The best-selling video game of all time (300+ million copies sold), a massive player community, and an educational platform.
What happened next: Minecraft continued to grow under Microsoft's ownership, expanding to new platforms, launching Minecraft Education Edition, and generating billions in revenue through in-game purchases and merchandise. Creator Markus "Notch" Persson departed after the acquisition.
Verdict: Exceptional. Minecraft has generated far more than $2.5 billion in revenue since acquisition and remains one of the most culturally significant games in the world.
2016: LinkedIn - $26.2 Billion
The LinkedIn acquisition was Microsoft's largest deal at the time and its entry into social networking and professional data.
What Microsoft got: The world's largest professional networking platform with 400+ million members (now exceeding 1 billion).
What happened next: LinkedIn has thrived under Microsoft's ownership. Revenue has more than tripled, driven by premium subscriptions, advertising, and recruitment tools. LinkedIn data has been integrated across Microsoft's enterprise products, including Dynamics 365 and Microsoft 365. LinkedIn Learning became a major online education platform.
Verdict: Excellent. LinkedIn is widely considered one of the best technology acquisitions ever made.
2018: GitHub - $7.5 Billion
Microsoft acquired GitHub, the world's largest code repository and developer collaboration platform.
What Microsoft got: The platform where over 100 million developers host, review, and collaborate on code. GitHub is essential infrastructure for the global software industry.
What happened next: Despite initial developer community concerns about Microsoft ownership, GitHub has thrived. Microsoft maintained GitHub's independence, kept the free tier for open-source projects, and launched GitHub Copilot (AI-powered code completion) which became one of the most commercially successful AI products. GitHub Copilot generates significant subscription revenue.
Verdict: Excellent. GitHub's developer community grew substantially, and Copilot became a flagship AI product.
2020: ZeniMax Media (Bethesda) - $7.5 Billion
Microsoft acquired ZeniMax Media, the parent company of Bethesda Softworks, in its first blockbuster gaming deal.
What Microsoft got: Legendary game studios including Bethesda Game Studios (The Elder Scrolls, Fallout, Starfield), id Software (Doom, Quake), Arkane Studios (Dishonored, Deathloop), and MachineGames (Wolfenstein).
What happened next: Microsoft made several Bethesda titles exclusive to Xbox and PC, including Starfield (2023) and Indiana Jones and the Great Circle (2024, later released on PlayStation). However, under CEO Phil Spencer's evolving multiplatform strategy announced in February 2025, Microsoft began releasing more games on PlayStation and Nintendo platforms.
Verdict: Good. The acquisition strengthened Xbox Game Pass significantly, though Starfield received mixed critical reception.
2021: Nuance Communications - $19.7 Billion
A less headline-grabbing but strategically important acquisition.
What Microsoft got: Nuance's AI-powered speech recognition and natural language processing technology, particularly strong in healthcare (clinical documentation) and enterprise customer service.
What happened next: Nuance's healthcare AI was integrated into Microsoft's cloud services, powering clinical documentation tools used by healthcare systems. The deal positioned Microsoft as a leader in healthcare AI.
Verdict: Good. Strategic fit with Microsoft's cloud and AI ambitions, though less visible to consumers.
2023: Activision Blizzard - $68.7 Billion
The largest gaming acquisition in history and one of the largest technology deals ever.
What Microsoft got: Call of Duty (the world's best-selling annual gaming franchise), World of Warcraft, Overwatch, Diablo, Candy Crush (King), and dozens of other game franchises. Approximately 10,000 employees across studios worldwide.
What happened next: The FTC challenged the deal but lost its final appeal in May 2025. Microsoft completed the acquisition in October 2023. The company committed to keeping Call of Duty on PlayStation for at least 10 years. In February 2025, Phil Spencer announced Microsoft would pursue multiplatform distribution, releasing games on PlayStation and other platforms rather than keeping them Xbox-exclusive.
Verdict: Too early to fully assess, but the multiplatform strategy suggests Microsoft views gaming as a content and services business rather than a hardware-exclusive one. Call of Duty and Candy Crush continue to generate billions in annual revenue.
Acquisitions by the Numbers
| Deal | Year | Price | Annual Revenue Impact |
|---|---|---|---|
| Skype | 2011 | $8.5B | Merged into Teams |
| Nokia Devices | 2014 | $7.2B | Written off (failed) |
| Minecraft/Mojang | 2014 | $2.5B | $1B+ annually |
| 2016 | $26.2B | $16B+ annually | |
| GitHub | 2018 | $7.5B | $2B+ annually |
| ZeniMax/Bethesda | 2020 | $7.5B | Part of Gaming division |
| Nuance | 2021 | $19.7B | Part of Cloud division |
| Activision Blizzard | 2023 | $68.7B | $8B+ annually |
| Total | $148B+ |
The One That Failed: Nokia
Not every Microsoft acquisition succeeded. In 2014, Microsoft acquired Nokia's phone division for $7.2 billion, attempting to compete with Apple's iPhone and Android devices. The acquisition was a disaster. Microsoft wrote off $7.6 billion in 2015 and laid off approximately 7,800 employees. The Nokia phone brand was eventually sold to HMD Global.
This failure preceded Satya Nadella's tenure as CEO and is often cited as an example of the "old Microsoft" approach versus Nadella's more strategic acquisition philosophy.
Satya Nadella's Acquisition Strategy
Under Nadella (CEO since 2014), Microsoft's acquisitions share common characteristics:
1. Platform plays: Each major acquisition (LinkedIn, GitHub, Activision) gives Microsoft control of a platform where millions or billions of users interact.
2. AI integration opportunities: Every acquired company has become a vehicle for Microsoft's AI capabilities. GitHub Copilot, LinkedIn AI features, and Nuance healthcare AI all leverage Microsoft's partnership with OpenAI.
3. Maintained independence: Nadella has generally allowed acquired companies to maintain their brand identity and operational independence, avoiding the integration mistakes of the Nokia era.
4. Recurring revenue: Each acquisition strengthens Microsoft's subscription-based business model, whether through LinkedIn Premium, GitHub Copilot, Xbox Game Pass, or Nuance healthcare subscriptions.
How Microsoft Compares
| Company | Largest Acquisition | Total M&A Spending (2011-2025) |
|---|---|---|
| Microsoft | Activision Blizzard ($69B) | $200B+ |
| Alphabet/Google | Motorola Mobility ($12.5B) | $40B+ |
| Amazon | Whole Foods ($13.7B) | $30B+ |
| Apple | Beats Electronics ($3B) | $10B+ |
| Meta | WhatsApp ($19B) | $30B+ |
Microsoft has been far more aggressive with large acquisitions than any other tech giant. Apple, in particular, has taken a minimalist approach to acquisitions, preferring to build internally.
Frequently Asked Questions
What is Microsoft's biggest acquisition?
Microsoft's largest acquisition is Activision Blizzard, completed in October 2023 for $68.7 billion. It is one of the largest technology deals in history.
Does Microsoft own Call of Duty?
Yes. Microsoft owns Call of Duty through its acquisition of Activision Blizzard. Microsoft has committed to keeping Call of Duty available on PlayStation for at least 10 years.
Does Microsoft own LinkedIn?
Yes. Microsoft acquired LinkedIn in 2016 for $26.2 billion. LinkedIn operates as a largely independent subsidiary within Microsoft, with its own CEO and product strategy.
Was the Activision deal approved?
Yes. Despite legal challenges from the FTC and scrutiny from regulators in the U.S., UK, and EU, the deal was completed in October 2023. The FTC lost its final appeal in May 2025.
Does Microsoft own Minecraft?
Yes. Microsoft acquired Mojang, the studio behind Minecraft, in 2014 for $2.5 billion. Minecraft has since sold over 300 million copies and remains the best-selling video game of all time.
The Bottom Line
Microsoft's acquisition strategy has transformed the company from a Windows-centric software maker into a diversified technology conglomerate spanning cloud computing, social networking, developer tools, gaming, and AI. The $200+ billion spent on acquisitions since 2011 has reshaped not just Microsoft but entire industries. Whether this strategy continues or Microsoft shifts to organic growth will be one of the most important questions in technology over the coming years.
Explore tech brand ownership on WhoBrands or browse technology brands.
Explore Related Brands
- LinkedIn - Professional network, acquired for $26.2B
- Minecraft - Best-selling game ever, acquired for $2.5B
- GitHub - World's largest code repository, acquired for $7.5B
- Xbox - Microsoft's gaming platform
- Skype - Video calling, merged into Teams
Sources
1. Microsoft. "Acquisition History." microsoft.com/investor 2. BBC. "Microsoft Completes $69bn Takeover of Activision Blizzard." October 2023. 3. The Motley Fool. "Best Video Game Stocks for 2026." 2026. 4. Wikipedia. "List of mergers and acquisitions by Microsoft." 5. Microsoft Annual Report 2025.
All brand ownership data verified through WhoBrands.com's research methodology. Last updated: February 1, 2026.
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Brands & Companies Mentioned
Owned by Microsoft Corporation
American professional networking platform founded in 2002, owned by Microsoft Corporation since 2016, serving over 1 billion members globally across career development, recruitment, and professional content.
Minecraft
Owned by Microsoft Corporation
Best-selling sandbox video game of all time with over 300 million copies sold across all editions, developed by Mojang Studios and owned by Microsoft, continuing to grow as a global cultural phenomenon in 2025.
Xbox
Owned by Microsoft Corporation
Microsoft's video gaming brand encompassing consoles, games, and online gaming services, with FY2025 gaming revenue up 9% driven by Xbox content and services growth of 16%, Game Pass revenue nearing $5 billion, and Microsoft becoming the top publisher on PlayStation in Q4 FY2025.
Microsoft Corporation
American multinational technology company developing, manufacturing, licensing, and supporting software, services, devices, and solutions worldwide.
10 brands in portfolio
Sony Group Corporation
Japanese multinational conglomerate corporation operating in electronics, entertainment, gaming, and financial services, known for PlayStation, consumer electronics, and media content.
6 brands in portfolio
Apple Inc.
American multinational technology corporation designing and selling consumer electronics, software, and digital services, headquartered in Cupertino, California.
15 brands in portfolio