Technology giant Microsoft (MSFT) revealed that it has acquired video-editing software start-up Clipchamp. The financial terms of the deal were kept under wraps.

Shares of Microsoft have gained 48% over the past year. (See Microsoft stock charts on TipRanks)

Founded in 2013, Clipchamp is based in Brisbane, Australia, and had 17 million registered users in July, with usage at more than 390,000 companies. Some of the companies using its software include Deloitte, Google (GOOGL), Microsoft, and Zendesk (ZEN).

Clipchamp technology, offering a Windows app, specializes in its ability to draw on online computing resources.

The acquisition is in line with Microsoft’s multi-year strategy to enhance its productivity software offerings for individuals, as well as corporate users. Furthermore, Microsoft will benefit from the Clipchamp user base, which will ultimately convert into Microsoft subscribers upon integration of the acquisition.

Chris Pratley, VP for the Office Media Group at Microsoft, said in a blog post, “Clipchamp’s technical approach is to combine the simplicity of a web app with the ability to process video using the full computing power of a PC with graphics processing unit (GPU) acceleration, something that was formerly limited to traditional video applications.”

Mizuho Securities analyst Gregg Moskowitz recently increased his price target on Microsoft from $325 to $350 (16.6% upside potential), and reiterated a Buy rating on the stock.

Moskowitz said, “We maintain our view that Microsoft’s growth opportunities over the medium-term and beyond are greater than many realize."

Consensus among analysts is a Strong Buy, based on 23 unanimous Buys. The average Microsoft price target of $329.68 implies 10.2% upside potential to current levels.

MSFT scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

Related News:
L3Harris Technologies Inks Deal to Sell ESSCO Business; Shares Slip 1%
STMicroelectronic Declares Mass-Market Availability of ST4SIM for M2M Applications
Omnicell Expands Global Footprint with New Software Development Center in India

The post Microsoft Snaps up Video-Editing Software Start-up Clipchamp appeared first on TipRanks Financial Blog.

----------------------------

By: Devina Lohia
Title: Microsoft Snaps up Video-Editing Software Start-up Clipchamp
Sourced From: blog.tipranks.com/microsoft-snaps-up-video-editing-software-start-up-clipchamp/
Published Date: Wed, 08 Sep 2021 14:03:38 +0000

Read More