Microsoft Corp (NASDAQ: MSFT) said on Tuesday it has acquired video editing software startup Clipchamp, but didn’t disclose the terms of the deal.
What Happened: Clipchamp, which caters to both individual and corporate workers, has over 17 million registered users with adoption at over 390,000 companies, as per a CNBC report.
The startup counts Alphabet Inc’s (NASDAQ: GOOG) (NASDAQ: GOOGL) Google, Deloitte and even Microsoft as its customers.
Clipchamp reported 140% growth in exports in the 9:16 aspect ratio, which works with Facebook Inc’s (NASDAQ: FB)’s Instagram Stories and TikTok, as per CNBC.
The Brisbane, Australia-based startup was founded in 2013 and counts Ten13 and Tola Capital as investors.
See Also: Adobe To Acquire Video Innovation Firm Frame.io For $1.3B
Why It Matters: The deal follows rival software company Adobe Inc’s (NASDAQ: ADBE) purchase of Frame.io for $1.27 billion, whose software allows people to comment on videos during the editing process.
Microsoft too has shown an interest in the video segment before, CNBC noted, and was in talks last year to acquire TikTok’s U.S. operations. TikTok did not go forward with that deal.
The Clipchamp acquisition is expected to help Microsoft further widen its productivity-related offerings.
Price Action: Microsoft shares closed 0.32% lower at $300.18 on Tuesday.
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