Kylie Jenner announces her pregnancy, and Microsoft announces a new acquisition. Obviously PR people just don't communicate anymore.
Background: US$2 trillion tech giant Microsoft has just bought a Brisbane-based video editing start-up called Clipchamp.
What happened: Just like Canva simplified document design (bye-bye Photoshop), Clipchamp targets non-professionals and non-creatives with a simplified video creation platform. And they've caught Microsoft's eye.
What else: We don't know how much the deal was, but we do know the co-founders won't be using the acquisition as their exit strategy. Instead, they'll be moving to work for Microsoft 365 (FKA Office 365).
💡In the biz world, an exit strategy is a contingency plan by investors or business owners to exit a business once it has met some predetermined milestones, like a profit milestone or a company valuation milestone.
💡When the company meets its chosen milestone, angel investors or business founders may cash out. This is commonly done through an IPO.
💡But acquisitions are an exit strategy too. An acquisition means business founders don't need to worry about who's going to take ownership of the company. But the crew at Clipchamp have put their plans on hold to move to Microsoft 365 instead.
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