Microsoft Acquires Hotmail

In a move to increase its electronic messaging offerings, Microsoft (Redmond, WA) has acquired

Hotmail (Sunnyvale, CA), the free Web-based E-mail service. Financial terms of the agreement were not disclosed. Hotmail will join Microsoft's Outlook Express messaging and collaboration client and Exchange Server. Members of Microsoft's MSN Premier will be able to check their MSN E-mail through a Hotmail account. "Our goal is to combine the benefits of Hotmail with Microsoft services and technology," said Laura Jennings, VP of The Microsoft Network. Hotmail will continue as a wholly-owned subsidiary of Microsoft, with operations in Sunnyvale.