Microsoft has today announced the completion of the acquisition of Groove Networks. The acquisition had hit a legal stumbling block, which has since been dropped.
Three days ago, it became clear that a judge would not allow a restraining order against Microsoft. Such an order would have prevented them from completing the purchase of Groove. Michael Matthews, a former Groove employee and the instigator of the legal action, said that the deal would benefit only the two main shareholders in Groove; Microsoft and Ray Ozzie, Groove's founder. It emerged through court papers that the deal was worth $120 Million.
Microsoft plans to continue selling Groove products on a standalone basis, whilst deciding how best to integrate them with its existing Office software. Groove makes productivity software that allows multiple users to work collaboratively on computer files simultaneously. As part of the acquisition, Ozzie will become one of three CTOs at Microsoft, reporting directly to Bill Gates.
"While Groove and Microsoft technologies already work together in very powerful ways, we've only just begun to realize opportunities to better address the needs of information workers at a time when the very nature of work itself is changing," said Ozzie. "I'm eager to contribute my experiences and lessons learned over the past 20-plus years in computer-supported collaboration to help shape the next wave of Microsoft Office System technologies and other future products."
View: More Info, Microsoft.com