Key Takeaways
- • According to The Information, a group of private equity firms recently valued Microsoft's Xbox business at between $100 billion and $150 billion, in discussions that were short-lived and never progressed to formal negotiations with Microsoft.
- • The firms were reportedly interested in exploring a potential buyout, but no formal bid or deal structure has been reported.
- • Xbox CEO Asha Sharma has publicly stated that Xbox is not for sale and called it an important part of Microsoft for a very long time.
- • Fortune reported that several current and former staff believe Xbox is being prepared for a sale, spinoff, outside investment, or subsidiary conversion, citing a high-level presentation on such scenarios after Sharma became CEO.
- • Microsoft executive Judson Althoff downplayed those concerns, saying Xbox is valuable to the company and that Microsoft would not place one of its best leaders on a business it intended to sell.
Summary
The Information reports that a group of private equity firms recently valued Microsoft's Xbox business at between $100 billion and $150 billion. According to the report, the discussions were short-lived and did not develop into formal negotiations with Microsoft, though the firms were reportedly interested in exploring a potential buyout. The original reporting is paywalled, so the details available are limited to the publication's summary.
The reports come weeks after Xbox CEO Asha Sharma publicly stated that Xbox is not for sale. In a separate interview with Fortune, Sharma said she believes Xbox will be an important part of Microsoft for a very long time. Fortune's reporting, however, cites several current and former staff members who believe Xbox is being prepared for an eventual sale, spinoff, outside investment, or conversion into a subsidiary. Fortune also reported a high-level presentation exploring such scenarios after Sharma became CEO.
Microsoft executive Judson Althoff addressed these concerns in comments to Fortune, stating that Xbox is valuable to the company in many ways. He added that Microsoft would not have put "one of the best leaders we have" on a business it intended to sell.
Taken together, the available reporting points to exploratory private equity interest that did not progress to formal talks, while Microsoft's public position remains that Xbox is not for sale. Further valuation or deal details would depend on the paywalled original reporting.
The reports come weeks after Xbox CEO Asha Sharma publicly stated that Xbox is not for sale. In a separate interview with Fortune, Sharma said she believes Xbox will be an important part of Microsoft for a very long time. Fortune's reporting, however, cites several current and former staff members who believe Xbox is being prepared for an eventual sale, spinoff, outside investment, or conversion into a subsidiary. Fortune also reported a high-level presentation exploring such scenarios after Sharma became CEO.
Microsoft executive Judson Althoff addressed these concerns in comments to Fortune, stating that Xbox is valuable to the company in many ways. He added that Microsoft would not have put "one of the best leaders we have" on a business it intended to sell.
Taken together, the available reporting points to exploratory private equity interest that did not progress to formal talks, while Microsoft's public position remains that Xbox is not for sale. Further valuation or deal details would depend on the paywalled original reporting.
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