Microsoft Corporation acquired Hotmail, a transaction announced in December 1997.
Hotmail operates in MSN (The Microsoft Network). Hotmail was a pioneering free, web-based e-mail service that let members reach a permanent e-mail address from any internet-connected PC, with features such as retrieval from up to four POP3 accounts, attachments and an address book. Microsoft acquired it to strengthen The Microsoft Network, combining Hotmail's web-mail with Microsoft services to offer consumers both free and premium e-mail; Hotmail continued as a wholly owned subsidiary within MSN.
Anchor MSN's consumer communications with a leading free web-mail service.
Hotmail has been a Web-mail pioneer. It has built a strong following by offering a free, high-quality e-mail service that lets its members access a permanent e-mail address from any PC with an Internet connection.Laura Jennings, Vice President, The Microsoft Network
Advisory firms were not disclosed for this transaction.