How Much Was Hotmail Sold For? The Surprising Price Tag

In December 1997, Bhatia sold Hotmail to Microsoft for $400 million. Smith went on to co-found Akamba Corporation and work as its CEO.

This acquisition marked a significant moment in the history of email and the internet. Hotmail was one of the first free webmail services, and its acquisition by Microsoft signaled the growing importance of email as a communication tool. The sale price of $400 million was a hefty sum at the time, reflecting the value that Microsoft placed on Hotmail’s user base and its potential for growth.

The acquisition also allowed Microsoft to enter the burgeoning market of web-based email services. Prior to acquiring Hotmail, Microsoft primarily offered email services through its desktop-based software, such as Microsoft Outlook. By acquiring Hotmail, Microsoft gained access to a large and growing user base of webmail users.

Hotmail’s success was largely due to its innovative approach to email. It was one of the first email services to allow users to access their email from any computer with an internet connection. This was a major departure from the traditional model of email, which required users to have a specific email client installed on their computer. Hotmail’s accessibility and ease of use made it a popular choice for users around the world.

The acquisition of Hotmail was a strategic move for Microsoft, allowing it to expand its reach in the growing internet market. It also solidified Microsoft’s position as a leader in the email space. Hotmail remains a popular email service today, with millions of users worldwide.