Microsoft Corp (NASDAQ: MSFT) announced on Tuesday that it acquired startup video editing software Clipchamp, but did not disclose the terms of the agreement.
What happened: Clipchamp, which caters to both individual workers and businesses, has more than 17 million registered users with adoption at more than 390,000 companies, according to a CNBC report.
The startup matters Alphabet Inc(NASDAQ: GOOG) (NASDAQ: GOOGL) Google, Deloitte and even Microsoft as its customers.
Clipchamp recorded 140% export growth in 9:16 format, which works with Facebook Inc (NASDAQ: FB) Instagram Stories and TIC Tac, according to CNBC.
The Brisbane, Australia-based startup was founded in 2013 and has Ten13 and The capital of Tola as investors.
See also: Adobe to acquire video innovation company Frame.io for $ 1.3 billion
Why is this important: The deal follows rival software company Adobe inc (NASDAQ: ADBE) Purchase of Frame.io for $ 1.27 billion, whose software allows people to comment on videos during the editing process.
Microsoft has also shown interest in the video segment before, CNBC noted, and was in talks last year to acquire TikTok’s U.S. operations. TikTok did not enter into this agreement.
The acquisition of Clipchamp should help Microsoft further expand its productivity-related offerings.
Price action: Microsoft shares closed 0.32% lower at $ 300.18 on Tuesday.
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