Midas with CoexEdit
Wed 9 Mar 2005, 02:07 PMTweet
by Ben Langhinrichs
Copyright © 2005 Genii Software Ltd.
What has been said:
297.1. Rich Hunter (03/10/2005 10:59 AM)
I ran accross this on the Net. I guess Microsoft needs a little help with Exchange.
Microsoft to buy Groove Networks
Acquired company's founder will assume CTO post for parent
By TODD BISHOP
SEATTLE POST-INTELLIGENCER REPORTER
Microsoft Corp. said it plans to acquire Groove Networks Inc., a Massachusetts company founded by Lotus Notes creator Ray Ozzie, who will join the Redmond company as chief technical officer.
Ozzie will be one of three chief technical officers at Microsoft, focusing on communication and collaboration products, said Jeff Raikes, the group vice president who oversees Microsoft's Information Worker division.
The deal, announced this morning, adds to Microsoft's portfolio of software used by workers to collaborate remotely -- an area that Bill Gates this week called "one of the big frontiers" for potential growth of the company's Office product line. Groove, in which Microsoft had already been an investor, makes a program called Virtual Office that runs on Windows.
Financial terms of the acquisition were not immediately disclosed. Microsoft said it expects to complete the deal in the second quarter of this year.
Privately held Groove Networks, with about 200 employees, would continue to operate from its Beverly, Mass., home as a unit of the Microsoft's Information Worker division, which includes Office and related programs.
Ozzie, who founded Groove in 1997, will report directly to Gates in his new role, while continuing to work with the Groove development team, Microsoft said. In a news release, Gates called Ozzie and his team "true innovators."
Groove's customers include large corporations such as The Boeing Co., Chevron/Texaco, Verizon and Unilever, in addition to smaller companies and agencies.
Since its inception, Groove had raised more than $155 million in financing from Microsoft, Intel Capital, Accel Partners and others. Ozzie spoke out in Microsoft's defense last year in its Internet Explorer patent dispute with Eolas Technologies. Microsoft recently won a partial reversal of an earlier $521 million verdict against the company in that case.
297.2. Ben Langhinrichs (03/10/2005 11:05 AM)
Exciting news, eh? I feel like part of the whole thing, for better or worse, because Groove has been buying licenses for our Midas Rich Text LSX product to allow them to "move Notes data to high quality XHTML". I guess now we know why they are moving out their Notes data.