How Much Microsoft Paid For Hotmail? The Shocking Price Tag

Microsoft acquired Hotmail.com for $500 million in 1997. This was a significant acquisition for Microsoft, as it was their largest purchase at the time. Adjusted for inflation, the deal was worth around $882 million in 2023. Microsoft integrated Hotmail into its MSN group of services.

This acquisition was a strategic move for Microsoft, as Hotmail was a leading email provider at the time. It gave Microsoft a strong foothold in the growing online market. The deal also helped Microsoft to compete with Yahoo! and AOL, which were also expanding their online services.

The acquisition of Hotmail was a major success for Microsoft. Hotmail became one of the most popular email services in the world. It helped to propel Microsoft into the forefront of the internet age. Microsoft eventually rebranded Hotmail to Outlook.com in 2013, but the service continues to be used by millions of people around the world.