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Microsoft (MSFT) shares traded low on Tuesday despite the news that the software giant completed the acquisition of video editor Clipchamp.
American multinational technology corporation Microsoft Corporation (NASDAQ: MSFT) has announced the acquisition of Clipchamp, a Brisbane Australia-based video editing software with a growing use amongst corporate and individual consumers. As reported by CNBC, the terms of the deal were not disclosed, and the acquisition might come as Microsoft’s efforts to include more applications into the Office 365 suite. This move became necessary following the price hike for the subscription-based service back in August.
Clipchamp comes off as a very resourceful video editing software that offers a Windows version. The software also has the ability to draw on online computing resources. Clipchamp allows anyone, irrespective of their experiences in video editing to combine videos, images, and audio files, as well as add text and effects, and then save the finished video to their computers. The service is available both as a free version and Premium features for subscribers.
“Clipchamp’s technical approach is to combine the simplicity of a web app with the ability to process video using the full computing power of a PC with graphics processing unit (GPU) acceleration, something that was formerly limited to traditional video applications,” Chris Pratley, corporate vice president for the Office Media Group at Microsoft, wrote in a blog post.
The acquisition news is a positive one for both Microsoft and Clipchamp as the former will take the backing of one of the most valuable companies in the world, while the latter will increase its application tools to millions of its customers worldwide. The shares of Microsoft are not impacted positively by the news. MSFT ended Tuesday’s trading session with a loss of 0.32% to $300.18. A slight slump is also being recorded in the Pre-market today with the share price slipping to $299.22 atop an additional 0.32% slip.
Clipchamp, a Welcomed Addition to the Microsoft (MSFT) Family
As of the time of the Microsoft announcement of the company’s acquisition, the Clipchamp services are not yet available through a Microsoft licensing program, CNBC reports, citing words from a Microsoft spokesperson.
Clipchamp is an actively growing startup which came into the limelight in 2013, and currently has about 92 employees drawing from the company’s LinkedIn profile data. As of July, Clipchamp said its software is being used in more than 390,000 companies worldwide, with a total of 17 million registered users, a growth metric that grew 54% from the year-ago period. The firm boasts of notable investors including Ten13 and Tola Capital, while it enlists Zendesk, Alphabet Inc (NASDAQ: MSFT), and Deloitte amongst others as its customers.
The productivity that Clipchamp embodies has been tagged as a great fit for the MSFT family.
“As a web app that uses the full power of your PC, Clipchamp is a natural fit to extend the cloud-powered productivity experiences in Microsoft 365 for individuals, families, schools, and businesses. It’s also a great fit for Microsoft Windows, which is a platform for boundless creativity,” the announcement reads.